Good for Microsoft, bad for customers. Productivity software going to a sub-based model sucked because at least in the past you could buy versions of those products for sale, and sometimes older versions provided better implementation of features than newer ones. But again, at least with productivity software, the subscriber makes their own income off its use, so they're getting something back for their money that's material and useful elsewhere.
Subscription-based entertainment was always a weird idea in concept; you get entertainment in return, yes, but the rate of that depends on the medium. Multi-game subscription services genuinely don't make a lot of sense because the average game will take multiple hours to play through and with largely undivided time (you can't really do chores or cook while playing an intense AAA game, for example).
The average person may not even play through more than 3 AAA games a year. On the surface a gaming sub service looks like it'd cover that, but they could've just as easily bought those games on sale and played them throughout the year at a cheaper price. Multi-game subscription services are useful for people who probably just dip their toes into a lot of different games but don't really finish most any of them.