This is just a side effect of hypercapitalism at play. Aspects of capitalism aren't bad, but when capitalism is the single biggest driving force of your society, things like this are bound to happen, because the endgame that gets rammed down everyone's throat is "making money is your life's purpose".
These types of things have happened across how many industries at this point, historically? Practically all of them.
Such issues are solved with proper regulation and effective antitrust laws. Unfortunately, if you lose the moment and allow the companies to gain enough power, it becomes incredibly difficult to push back against that. That's basically the state of things in the US
would gamepass be the closest to that? The other alternative would be games being small indie projects or huge community things. The mods people release for free are sometimes pretty insane in scope, even if Noone ever paid for a game again we'd still get some decent games at least
Game pass is more like the Netflix of gaming. Not all the content you want but at a reasonable price. Stuff gets removed a lot and there's lots of fragmentation with competing services.
PBS is not a government agency. According to [0] they get about 13% of their budget from the federal government and 5% from state governments. So less than 20% of their funding is from the government.
These types of things have happened across how many industries at this point, historically? Practically all of them.