How much do you think games on gamepass cost? Do you think MS takes games from devs, and puts store known as gamepass store?
What happened to xbox store? or Windows store? Do these thing not exist?
This is what happens, when you dont take economic classes. we get pretty takes like this.
Games still exist on the xbox store. Gamepass doesnt pay anything to have those games on their service. Its like google having youtube on their chrome. That is 1 cost down.
then you have the cost of games. These work in monthly basis.
Epic spent at least $11.6 million on free games and gained 5 million new users in return
here is the chart for these games
Over the first 10 months of the Epic Games Store.
www.theverge.com
You see how much these games cost? Gamepass only has 1 year contract, and they arent giving away the games for free. The cost would be less than, what Epic/Playstation pay the developers, to put their games on their service. The remaining money goes to xbox 1st party studios, to help them fun the next project.
Based on the chart I gave you here, its sustainable and profitable.
Your example isnt even sustainable example.
Sustainable means depending on your money, not outside help. If you get outside help, you dont sustainable income.
Profit means gaining more money, which you dont need to invest it back. Gamepass is investing business. It cant report profits, because it goes to investing mode.