Big AAA titles take several years to produce and I doubt Apple will allow half-baked games to launch. That means we won't be seeing those games start to launch until 2023-2024.

Apple is definitely working on a VR headset. They've bought out 4-5 VR companies already. There were rumors of a 2022 launch, but 2023 matches up much better with their game studio launch dates.

That subscription is a HUGE moneymaker (that's how WoW made Blizzard so much money). Most serious gamers play 1-2 games for a couple of years. Traditional studios charge $60 (less for sales) and then release one $20-30 DLC per year. That gives them $120 over two years at the very best (though most players won't bother with DLC). Apple gets $80 per year unconditionally. Moreover, this will get casual gamers in addition to hardcore ones.

Now that Apple runs everything on M1 and even the slowest M1 chips have better GPUs than most Wintel systems, Apple can sell games to everyone. Because everything is using the same architecture (same CPU and same GPU across the board), their devs save a ton of time and money developing and optimizing which means their total time to deliver and cost to deliver is much lower.

I suspect that MS sees this as an extremely serious threat. They need to do everything they can to leverage xbox pass and compete.