In order to become the Netflix of gaming, you must provide more quality content above questionable shovelware. At least with Netflix, for $10 or so a month, the amount of big name movies,television shows and Netflix originals outweigh the filler of average titles of movies and television shows. You’re also not expected to buy anything other than the subscription. And, no commercials or outside advertising.
Microsoft would probably expect you to pay an entrance fee like Xbox live, pay for the subscription, offer to pay for games, pay for dlc and micro transactions and you would have to deal with being advertised to by other parties most aren’t interested in like mountain dew and doritos.
It would also have to be streamed as most games are too large to be downloaded in most data plans,slow internet areas and small countries. It’s why Netflix works because of smaller content sizes and why game streaming services have yet to take off.