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Or is it just one of Phil's balls in my throat?
More like desperate to increase their userbase. Spending 10 times as much as anyone else and still failing. They want to win and make money. They aren't in the business to give you a good value.
All console hardware (except Nintendo) sold at a loss for almost the entirety of a consoles lifetime. Selling hardware isn't what makes them the most money, selling software, or getting people hooked on recurring monthly fees, is what does that.
Regardless, game pass subs will get all the games from Bethesda, and soon from Activision Blizzard on game pass and there's no current signs of indications that they are even thinking about increasing the sub price any time soon.
Their goal may be to get more people subscribed to their service, and offering the great value and incentive *is* what helps them get to it. Which ends up being incredibly beneficial for people in the eco system.