It doesn't even matter if Gamepass or Xbox is currently profitable or not. It's about whether it can be more profitable. They originally thought the path to that was through exclusivity - now they don't (just as Sony changed course in regards to putting stuff on PC). Anyone who thinks that corporate decision-making is ever based on anything else is being naive.

The practical concern here for me is at what point does MS find it most profitable to stop supporting my ability to use my accumulated physical and digital xbox software. Another reason walled gardens suck.