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For the time being COD being on Playstation isn't necessarily a bad thing for Microsoft. It's the no.1 franchise on the Playstation, so as long as it remains that way, the draw towards GamePass being a place you would want to switch over to is good for MS, people will eventually realize "hey wait a minute, I can just get the new COD and play all the previous ones for a lot less money with an XBox", which each COD copy sold makes MS money to finance more gaming projects on top of that.

If MS really wants to squeeze the screws, they can increase the price of the games to $79.99 or even $89.99 for standalone to make the value proposition of Game Pass look that much better.