Amazon killed off physical book stores. Moreover, some retards on the web already advocate for closing of public libraries in favor of Amazon/Kindle. Netflix killed off rental stores and is slowly killing movie theaters. This sounds good to some people, but they only think about their immediate convenience, rather than long-term consequences. In the long run this will lead to hyper-centralization of movie production. No one is going to pay for Netflix, Hulu, YouTube Red and Amazon Prime subscription at the same time. And as the time goes by there is less and less chance that someone completely new will be able to compete with the established subscription services. And they will be able to simply buy their competition in case it gets reasonably good.
Let's look at the inevitable consequences of games-as-a-service model:
1. DRM.
2. No game ownership of any kid.
3. Money to the developers is distributed by some formula that's controlled by the platform, not through percentage of actual sales.
4. Products do not directly compete with one another.
5. Inevitable hyper-centralization in the long run.
It's especially hard to predict how #4 will affect game quality, quantity and diversity. For example, right now indie games can compete with AAA titles by lowering their prices. This will not work under the subscription model. Also, newer games have to compete with much cheaper older games. This will stop being a real factor either. Most importantly: no immediate feedback. Right now, if your game sucks, no one buys it. With subscription model, the platform would be able to redistribute money any way their contracts allows them. Subscription a-la Netflix is the ultimate form of bundling, where every single thing on the catalog is bundled with every other thing. This gives the platform disproportionate leverage over consumers and content producers. Your only option as a consumer is to unsubscribe, and then you loose access to everything in the catalog.
This stuff is not like cable TV or old-school magazine subscriptions.