So does this mean more games would be better served with demos, or that discovery is much easier on a huge new platform?
I think it's a combination of both. As long as you have Game Pass, there's no barrier to entry for trying any of the games on the service. So, it's kind of like a Demo, but unlike a Demo, there's no arbitrary limit. So, for example, some Demos might have a limit that ends a person's experience before they can decide if they like the game enough to buy it or not. Some games might take you say, 5-10 hours before you're really hooked and "HAVE" to have the game, but many demos will end after say 1-2 hours or something.
Discovery on Game Pass is also enhanced. Not because it's a huge platform, but because there are a limited number of curated titles introduced to the service each month. This is different from say going onto Steam or even Epic for the first time and just having hundreds, thousands, or even hundreds of thousands of titles suddenly at your fingertips. Where do you even start with something like that? Smaller developers get drowned if they aren't featured on the front page, and even if they are, did a customer that might be interested in that game happen to look at the front page on the day or days where it was featured? It's a huge problem with no easy solution, unfortunately.
Game Pass not only has curated list of games, so a customer knows that all the games are quality games even if they may not be the type of game they'll like. Additionally, since its curated it's going to be a relatively short list of games compared to an open storefront. Even compared to the Microsoft Store. So even if it isn't featured, the browsing list won't be huge and intimidating. Coupled with X titles allowed onto the service each month, this gives featured titles a decent amount of time to be front and center. And even if a customer doesn't look right away, the list of new titles for a given month will be relatively small, helping discoverability.
Discoverability (for consumers) versus accessibility (to developers) isn't something easy to balance. If you have great discoverability that generally means it's almost impossible for smaller unknown developers to get onto your platform. OTOH - if you have great accessibility for developers to get onto your platform, discoverability to consumers takes a hit.
Game Pass allows smaller developers to get a boost, but generally only after they've had some form of critical reception, whether that's through game site reviews or through user reviews. In this respect, Steam is a hugely valuable asset to Microsoft as Microsoft can directly see user reception to a game. And not only that, but because Steam displays user reviews over time combined with an easy to maintain (for the developer) way to post update notes for their customers, Microsoft can also see how well a developer supports their product over a long period of time post launch.
While that doesn't help a smaller unknown developer get onto Game Pass day and date, it does make it possible for them to get onto it at a later date...if their game is well received and well supported.
Regards,
SB