Microsoft can use its financial muscle to keep gamepass games free. This will push consumers to Microsoft even if the quality of the games isn't the same as Sony.
People don't prioritize quality, we've seen this in the industry over and over, people prefer cheap prices. Which is why right now most of the products are shit, because people kept buying low quality for cheap. And the same will happen with Microsoft, most of the world would rather have free gamepass games for new games than having to wait years until they become available in Sony's free tier.
This is how Microsoft will penetrate the market. I already have friends moving to Xbox because it is cheaper. Microsoft isn't a monopoly right now, but this is a long term play. Microsoft is a whale, Sony is a shrimp. Microsoft can kill Sony using its financial muscle, just like Walmart kills local competitors.
"morality"... What a fucking joke.