Microsoft gaming strategy does benefit gamers. Which counteracts the problem of losing a competitor.
Microsoft doesnt care about profits on single products much compared to the grand strategy they follow. For example AoE4 and all the aoe franchise doesnt really give a lot of profit Microsoft would care about, yet they keep investing and updating it bc they like it and like the strategic benefit.
Not caring as strictly about profit means you dont get as many greedy microtransactions and more balanced approaches. The game pass is also a really cheap deal if you play variety
Grandmas tend not to have gamepass