The biggest issue that gets overlooked is Day 1 on Ubi+ for a major AAA.
You get turned off right away about paying full price when other people are paying $10 at the same time as you. Cheap, bargain bin aura at release. Same issue with GamePass or PC ports for Sony.
You devalue your stuff and people just don't care and move to the next premium game instead. These people just don't understand the psychology behind brand loyalty.
It's like going to see a free random show in a park or paying to go in a stadium. More people are willing to pay for the full experience of the stadium show.
Gamepass/Xbox has a massive Image Problem.
It is recognized as the low-quality platform, with a cheap subscription service (of poor quality!).
There are more and more games you are missing out on, as a Xbox Customer, and many Publishers don't want those gamepass deals either.
A Big-Player like Take Two coming out, and making clear GTA 6 won't be on Gamepass, is a huge statement!
Wukong is not on Gamepass either. (Or even on Xbox...).
Elden Ring is not on Gamepass.
Hogwarts Legacy is not on Gamepass.
And so on...
Why would anyone pump money in a platform/subcription, that might won't even receive the games anyone wants to play anymore?
People brag about how much money they "saved" from playing whatever is in Gamepass. It is just dumb and naive.
They expected to play the latest games for $9,99/month, but that dream is dead.