Its not just to compete with Gamepass, it’s moving to where the customer is. Over the next 10 years, where is the growth in gaming going to come from? Hint: not selling more 400 watt white and black boxes dedicated to gaming that plug into screens. Sony and Microsoft are less interested in competing with each other and more interested in protecting the total market from Google, Amazon and Apple. None of those companies have legacy console business, have enormous cash piles and understand there is a bright future in gaming ($$$)
Gaming will eventually be where if you want to play a game, you just plug into a remote computer system pre-built for it, and the only games that will still be installed on consumer devices will be those which need extremely low latency like shooters and fighting games.