The subscription model is, in my opinion, dumb. If they need it to work, maybe they should buy games instead of studios. I can't work out exactly how long term patching would work though, unless they kicked back a maintenance fee from sales and gamepass usage to the studio.
I will say, these days it's more or less impossible to release a game that'll run perfectly on every system and it's a good thing we're able to fix crashes and patch issues as they come up. This has naturally had its downsides as publishers squeeze devs for tighter releases, but outside of that it's a very good thing for devs and players.
It would be a bad look and there were anologue standards at play then. Digital releases and the capacity of storage mediums really pushed releasing unfinished games over the edge.
It must work like the music streaming model where Apple kicks back a fee to the devs based on monthly installs or usage to the dev. It probably works better than Microsoft's model of buying a developer, not committing resources to run them, then closing the studio.
This exact method is how Microsoft became a giant in the first place. They've been doing it for longer than I live and they'll likely outlive me doing it.
Microsoft is buying up companies to stockpile IP. Simple as that.
Then they have a lot of redundant workers so they let them go, leaving the IP in their hands to be filed away for potential lawsuits against infringers.
Is it still EEE when they're shooting themselves in the foot all the time? Xbox 360 had a good run but then during the cycle they dropped the ball and even got overtaken by PS3 late. One and Series S/X don't matter that much.