True, game pass is a really good deal if you want to save money and you don't care about ownership as much (also a problem with steam, but to a lesser degree). But they still struggle on PC. They just recently rebranded it to pc game pass instead of xbox game pass and they want to improve the horrible app.
I think Steam will at some point perhaps react to that, but many PC gamers are still quite vary of MS and I don't think it has affected their business too much. Not only because their older sins like GFWL.
Well, without the hard numbers on subscribers it's going to be hard to quantify one way or another if microsoft are 'struggling on pc' or not. Needless to say though, their catalogue of games on offer for a small monthly fee is absolutely insane. From various twitch streamers/youtubers in the gaming industry people I've only heard praise for its value for money for the customer (anecdotally of course). Clearly microsoft are throwing money at the market right now for growth, how long it lasts I don't know.
Don't get me wrong, I have been a linux user for 16 years and would love to use it for my gaming needs, I think we just have to be realistic here. MS are pumping money into the gaming industry, through the game pass and buying studios. They are not going to let linux become the dominant gaming platform without a fight.
I think Steam will at some point perhaps react to that, but many PC gamers are still quite vary of MS and I don't think it has affected their business too much. Not only because their older sins like GFWL.