Well, if this rumor is true, you have to remember that MS is actually giving it another go next gen.  Doing this on the PS4 would hurt their chances, since they compete much more with Sony than Nintendo, and that would 100% make an XB2 unnecessary.  This wouldn't surprise if it were true, as they are really making a bunch of moves lately to make a transition from HW/SW to just SW easier.  My guess is that if they do stumble out the gate, again (which is very possible if we get a very powerful PS5 @ $399 w/ B/C with PS4), they will just stick with PC + Nintendo develop, much like Sega did after the Dreamcast failed to change their situation in the HW market.  And much like Sega, if the PS5 is on its way to 100M, too, the higher ups and investors will probably be insisting on releasing games on PS5, as that is where they will flourish the most with core console gamers.

Let's just hope MS doesn't snuggle up to them, with the end goal being an acquisition.

I wonder would Nintendo require you to buy their online pass in order to play gamepass. Could be a worthwhile trade off.

If they do this I believe the xbox will sell less as the exclusives will be available on Switch and pc.

Well i guess we wait and see how it plays out. Will be interesting if it comes to fruition.

Unless the price recently changed, Gamepass only costs $10 per month, and is often available for less than that.  

I'm pretty sure this is gonna be a watered down version of Game Pass like select indie exclusive titles and something similar. No way its as grand as what Gamepass currently is on Xbox One. I can't see that happening

Sony has a competing service with PS Now.

Yeah, I think this. I mean, think about it: If you own a Nintendo console and one of Sony's or Microsofts consoles each gen (a combination not unheard of since the Wii-gen), this would turn the scale far, far into the corner of preferring the Microsoft console as combination instead of Sonys offering. Because you can use Gamepass then on both devices. Even if people only get the Switch, then MS makes money off Gamepass. I can see that Gamepass is Microsofts bet for the future, not their console. If they have a move that gives them a massive advantage versus the competitors PS Now and EA Access, then I think MS is willing to do that. And partnering up with Nintendo would be a massive gain for Gamepass.

Since the Switch released I've been thinking how great for both companies a Xbox-dock for Switch would be. I still thought that this is a nutters thought, but with the recent news of the companies cozying up (cross-play, Xbox-Live available for Switch devs), maybe it isn't as crazy a thought as I made it out to be. And as you describe, it would be a great benefit for both companies and would shape the next gen in a completely different direction.

Not sure about Switch online. With such a move Xbox Live available for Switch would be very possible.

And I not necessarily think this makes the Xbox-console obsolete. Streaming is still far away from being as good as having the possibility to play a game natively. So maybe Switch-owners like the games they play via gamepass but want them lag-free and invest in a Xbox.