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Microsoft spending $1B annually on third-party Xbox Game Pass titles
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I get what you saying, but I think (when it comes to video games) MS is in not position (and hasn't been for a while) to spend in something that doesn't gives them a solid profit. I like Game Pass, but since 2021 I subscribe only any other month or so, the novelty wore off and I have a big enough backlog to keep me occupied. MS needs (hear me out lol) some strong first party AA line up to make GP attractive.
I bet MS agrees with you which is probably why they've bought Bethesda and Activision Blizzard.