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yeah, it's been around since the launch of Xbox Live. though it wasn't called that back then.
initally the service was solely subscription based, as it's main feature was just online multiplayer. the inital option used a "starter kit" bundle containing a headset, a disc to install the necessary dashboard update, and 12 months of subscription.
but the release of the 360 lead to the existence of a free tier, with the subscripion getting rebranded as "Xbox Live Gold". as by this point features like downloadable games (these existed on the OG Xbox, but were extremely limited and required a special disk to run them.) and DLC had gotten large enough to be a extra non-subscription based revenue stream.
both tiers lasted as the status quo for quite some time, until Microsoft came up with the idea for Game Pass in 2017.
it naturally managed to overshadow the other options due to it's nature, but it wasn't until now when Microsoft decided to go all-in on having it be the only subscription option.
everyone who has previously subbed to Gold will get moved to the new core tier, and you'll still need a sub to access your previously claimed Games With Gold titles. (with the exception of the old 360/OG Xbox titles, those are permenantly bound to your account.)
that's honestly my biggest issue with the new setup, GwG was designed so that you'd keep your games as long as you stay subscribed. while Game Pass uses a rotation system which slides your options in and out over time. it won't be an issue for now as the vast majority of confirmed titles are 1st-party games (which are rarely cycled out), but it'll get problematic over time as more 3rd parties are thrown in (or even Forza, for that matter. those are always delisted after a few years due to car licensing.)
