They don't need it to be profitable. Microsoft makes money hand over fist as a whole company. They are more than capable of taking losses for YEARS in their gaming division without actually hurting. Game pass doesn't need to be profitable, it needs to exist so it can hurt sales enough that Sony and Nintendo are not considered competition anymore. Then they can do what they want. IE jack up prices.
They don't need it to be profitable. Microsoft makes money hand over fist as a whole company. They are more than capable of taking losses for YEARS in their gaming division without actually hurting. Game pass doesn't need to be profitable, it needs to exist so it can hurt sales enough that Sony and Nintendo are not considered competition anymore. Then they can do what they want. IE jack up prices.