I've always said that if Sony did an exact Game Pass clone, it would grow faster than Game Pass, it's not an exact comparison but I say Xbox would be the Netflix and Sony would be the Disney Plus, Netflix is still #1 but Disney+ is growing a lot faster aligned, I would expect a Sony Game Pass to catch up to Game Pass very quickly and I don't think it would be very hard to achieve that goal.
Sony's brand power is incredibly strong, they have a much broader global appeal, their 1st party influence is stronger (until Bethesda/Activision starts dropping) and they have a much higher ceiling for subs due to the fact that there are far more Sony consoles in the wild than Xbox consoles, across PS4/PS5 vs Xbox One/Xbox Series. I would feel confident in saying that there is likely a high chance that Sony's PC launcher will be better than Xbox's as well, Lol.
But being able to compete doesn't mean being profitable, I think Sony could match Game Pass but it would come at a loss of billions, I've no doubt Game Pass is likely losing a lot of money but that's to be expected at this stage, now Sony likely thinks that they profit already and they're already a market leader so why should they bother entering that market.
Microsoft however has different goals in mind and being the juggernaut they are, they can take heavy losses for long term rewards, it'll be a lot harder for Sony, it's a similar case in the TV Streaming market, nobody aside from Netflix is profiting on their streaming segments right now, Disney is taking billions in losses and they're bigger than Sony, other companies such as Paramount will take millions to billions in losses for their streaming segment, no doubt Apple and Amazon is the same.
But the point is they're investing now in the hopes that they'll be one of the survivors of the streaming service market, a few will no doubt fall and the losses will be too much, some will take the losses in the hopes that others pull out first, once we're left with only a few then things will smooth out for them, juggernauts like Apple and Amazon will likely never pull out simply cause they have "fuck you" money and will use that to outlive their competitors.
Microsoft will happily take millions, maybe a few billions in losses over the years if they have a long term goal in mind cause frankly, they can. Sony has a lot more difficulty doing that being that they aren't anywhere near Microsoft so they've weighed the risks up and decided their traditional approach is safer for them and they've no need to take this huge risk, I do though, think there is room for both.