I must admit I feel old or like a Luddite when I think about this. Like, the idea of playing AAA games on my phone sounds awful, and when people suggest they enjoy that (or the prospects of it) there is a genuine disconnect. I know this is only one aspect of these services, but is there really a demand to play AAA games on the sub-optimal devices or less than desirable situations? I don't get it honestly.
Then again I also worry how these service based solutions will affect game development. As a thought experiment of Bethesda started offering their games for, say, $100 a year (maybe more, maybe less). How do the number of people that previously bought their games in the tens of millions and invested hundreds of hours change the dynamic of their revenue streams, especially with post-game content like DLC. Would Bethesda still make these massive games?
Another thing that I've still never gotten an answer to is what kind off revenue and profit is Microsoft getting from GamePass? If they are putting so many games on the service, including other publisher's games (and this presumably paying for the rights) and frequently offering discounts for GP is this a service that is making money and will grow and make even more or is it a gamble that if they get enough subscribers they will start to make money. Especially considering Microsoft doesn't sell as many consoles and seemingly wants to transition away from hardware.