My tears. Exclusive to gamepass. Forever.
The overwhelming majority of people who play games don't do it on their PCs or consoles. They do it on their phones.
With 5G becoming more common place, I think MS think that more people will be willing to play their games on their phones vs a typical mobile phone type game.
MS is all in on the cloud.
MS is also going to release a streaming box. Some people with good internet might be happy to pay only $100 and get a GP sub as their way to play games.
I think MS is intending to change the industry.
People were saying the exact same thing about streaming movies on your phone and TV. Infact, when the Australian government planned the infrastructure for the NBN they widely underestimated the requirements for their fixed wireless part, which led to congestion on the entire network, all because they never thought Netflix etc would take off.