I actually think that the era of cinematic games has ended because the film world has lost a great deal of its prestige along with its financial pizazz. The biggest figures in filmic gaming like Ken Levine have been in the wilderness for 10 years. What gaming companies admire are the mobile game makers and the gambling companies, which turn out much greater profits than any cinematic game could hope to. What drove a lot of that cinematic game decision making was envy by business executives towards Hollywood, combined with a firm belief that the future of games looked like that of movies.
Business leaders sought the prestige and influence accorded to Hollywood, and made creative and technological decisions accordingly. I don't think anyone in business envies Hollywood anymore unless they have a fanatical nostalgia.
One way in which the gaming companies want to emulate film is in the economics of the streaming business. Microsoft is the only company that has succeeded in introducing a "Netflix for games" at large scale at a similar price point. There is probably more investment money available now for small games companies looking to try out a new model than at any other time in recent memory, just because a lot of the old ideas are saturated and are just not delivering the kinds of returns that they were in the past. I don't think Microsoft really has a direction in this, they just know that they can justify making more acquisitions to shareholders because they have a good narrative about what they're going to use it for: if you like stocks like Netflix, in the gaming space, we are imitating the acquisition strategy of Netflix, and our stock price is likely to go up. As it relates to how those individual games are monetized, Microsoft just wants literally everyone to sign up for the GamePass subscription and is probably less concerned about the monetization of individual titles than it is about generating huge growth in subscribers.
The emerging consensus on how streaming services have impacted Hollywood's creative strategy is that creative quality overall has gone sharply down, with studios more focused on generating volume and picking content themes that just have high ambient demand, since SEO and recommendations are the only thing that matter, with ad campaigns and conventional marketing not really moving the needle. I don't think anyone really knows how to make these content acquisitions work well. I think this model is a boon for mediocre games, but probably makes it harder for big ticket blockbuster style games to stand out and to have their old economics work. If the new habit that the corporations are trying to train is to have Joe Couchpotato click on GamePass to see what's new and NOT to buy individual games, it just leads to a very different creative and business dynamic in the industry than existed in the past.