I really don't understand this strategy at all.
Xbox is losing the console war and Microsoft is going to increase prices?
Literally the only place where Xbox is still relevant is the US. In the rest of the world Nintendo Switch and PS5 dominates because they have the exclusives.
Xbox used to have decent exclusives, I loved Jet Set Radio Future, Shenmue 2, DOA beach volley Xtreme, etc. But now Xbox has almost no exclusives and the very few they have you can just buy on PC and you'll actually be able to play them at 60fps+.
People buy consoles for exclusives. Get that through your head Microsoft. People buy Switch for Zelda. They buy Playstation for Final Fantasy.
So why would you actually increase the price of Xbox everywhere except the US if you're in such a weak position. If Xbox wasn't dead as a doorknob yet outside of the US, it surely will be now.
As far as Game Pass. The first time I tried game pass years ago it was fine, I thought it was pretty fair. But I stopped subscribing to Game Pass because it started to be nothing but mediocre indie games and they increased the price. Another price incrase makes game pass way too overpriced for what it is.