people keep saying this but its actually the opposite. Microsoft has realized that console business is deadend. Making people buy certain hardware to play something will not work. Xbox is essentially moving to complete software as service model. Content on cloud, accessible from any medium via subscription. They may take it away from Playstation, but will add it on many more devices over all. Will be evident in few years when we have 5G widely available, better cloud computing and playing on cloud is essentially same as playing it locally.
This, it really is heading this way.
Eventually you'll just buy a controller and just log into your subscription of choice via the TV. I mean shit, I'm assuming Sony is still making TVs, what if the PS6 is literally a television, lol.
It does seem like a bummer but honestly, it's hard for me to get worked up about the future of gaming cause the most important games to me are older ones and I own all those consoles and a CRT. Once the consoles/CRT dies, I'll just get a FPGA device.
It will be interesting though to see how big or how niche Sony will be in 10 years. There's all kinds of niche subscription services like the Arrow Player (horror, art house stuff) and Shudder. Die hard fans eat that stuff up. If 10 years from now Sony has their subscription service with less games than MS, so be it. As long as they can be profitable and maintain some kind of presence, I'm alright with that. You could even have developers do a Patreon type thing and just self release games via their own service. So many different ways the future of gaming could go.
I definitely don't think this is some kind of kill shot though for Nintendo or Sony. It is a big deal, that can't be denied, but I think people are kind of overstating what the long term effects might be for companies competing with MS in the gaming sphere.