I think you are not getting the point the I am trying to make. The other model is based on 2 games per year ( it's not really a model just normal way of selling games). Gamepass is not going to be attractive option if it is only 2-3 games per year. Plus 3rd party deals. At this moment, MS doesn't have any big budget AAA games and with new studio acquisition, they will have it ready in 1-2 year from now. With Gamepass model, they are not going to earn any extra revenue but production cost will go up. As mentioned by that journalist in that tweet, 3rd party games are asking for more money if they come on Gamepass, so added cost there. At this moment subscription number matters for MS as these are potential customer for their cloud service but with rising cost, how long it will be sustainable model is something I am not sure about. Your calculations are very rudimentary and I feel ignores a lot of other cost that will come up once MS start releasing those promised big titles.