I think Sony will improve its PS Now services a bit more in the future. But that would be just to improve their offerings -- not to compete with Gamepass.
Microsoft introduced this Gamepass model, but they have yet to prove that it is sustainable and profitable. Until they do that, it is useless to expect other companies to abandon their tried-and-tested profitable strategies and adopt someone else's unproven strategy. It doesn't make sense.
Personally, I think Sony should continue doing what they have been doing, but they should also combine PS+ and PS Now. This will simplify their subscription services as currently, it is confusing. Second, despite the substantial increase in PS+ monthly offerings, it does not get the mindshare because of the monthly rollouts and expiration of games.
Combining the PS Now downloadable section + PS+ collection + adding new games that would be added either permanently or for multiple months would allow them to stay in the news and market their subscription service more effectively.
Gamepass is profitable if you stop comparing it like Netflix. Gamepass has other revenues, which netflix doesn't have. You can't buy movies in netflix, or extra content, or buy merchandise of the movies in their netflix sit (you need external web for that).
Gamepass is simply base content, that needs dlc for full package (people buy dlc, and this can be first party games), sells the game (they leave after year, with 20% discount), and you can buy mtx (spent 25$ on fifa. I only did it, since I enjoyed the game). Then you have the sub fee on top of that. While we publicly now the sub is 18m (23m as a rumor), that is still alot of monthly money if you add all of them.
But gamepass is a subscription service. It needs to have new content, so you are constantly reinvesting in it. If you live like that, you will have psnow (3m. Good service, but it seems like Sony doesn't want to focus on it. And big games these days have 4 month stay time).
The goal for it is to have at higher sub count, where reinvesting is low, because the profit is too high. But as of now, all the profits are used for day 1 games. And they will continue to do the same until they get to 50m, and Activision join their games to the service (no way they will give up that walking money bag. 50m is big for them, considering you have pc guys too who loves cod).
And remember, 18m without fable, bethesda games, or any day 1 xbox games. That is still insane for a service who has low 1st party output now. That should quite tell you, people like the games it offers, and not just their 1st party.