FFS. Ok, I'll bite.
1) Netflix and Gamepass and Disney+ and Apple TV and PlayStation and Amazon Prime are all competitors. Framing this in direct comparison of media types is useful only when considering particular segments at the extreme ends of the overall distribution, and production costs required to compete (think difference in budget for a "AA" TV show Vs a "AA" game). This battle has been raging for some time now, and it is the battle for share of time of consumers - of which there is a finite amount.
2) This arena is approaching saturation point, as there are also a finite number of consumers willing to overlap services.
3) This arena has benefited significantly from a recent market shock (Covid-19) and now needs to re-correct as the world opens up and new competitors like cinemas, restaurants, bars, clubs etc reclaim their share.
What does it mean in context it Netflix and Gamepass? Sure there is more likelihood of a Gamepass subscriber redeploying to PS or a Netflix to Disney+ as people manage their portfolio of ways to waste time and there are big overlaps, but the question for all of them is how to avoid what's happened to Netflix: price no longer equates to quality, so they're the little bear that just rolled out of the bed.
Will it happen to Gamepass? Entirely up to MS and what they do with that price/quality dynamic. Right now I'd say it is getting it right, particularly in context of a penetration pricing strategy designed to drive growth fast of a newly defined category. That's the other thing to consider with Netflix, where are they in their product lifecycle? As you increase price it is natural the pool of customers able and willing to pay for the offer reduces, but those that do are paying more - it's a fine balance.