But where is the money coming from? I mean by that, where is the funding for these Game Pass deals coming from? AFAIK, when Sony does 3P deals, that money can be appropriated to as being covered by PlayStation profits.
We already know Xbox doesn't generate the profits to secure acquisitions the size of ABK, so is the division profitable enough to cover costs for Game Pass deals, or is that money from other parts of the company doing the heavy lifting?
Yes on one hand it isn't important; on the other hand it's a valid question to ask because it also brings up what subsidization strategies are being used and if those can potentially be abused for anticompetitive practices (such as predatory pricing).
It could lead people on other platforms to hold off on buying the game Day 1, meaning less unit sales and less B2P revenue. In turn, that would increase the price MS has to pay to get the games on Game Pass, since they'd have to account for drops in B2P sales revenue across all available platforms.