As I've mentioned in the past, I fully expect them to use these losses to justify more large purchases. A regulator with common sense should ask though, "how are Sony and Nintendo able to do so much better with significantly fewer resources?"
Yep. And if they don't ask the question, the public should pressure them into asking it, because it's such an obvious question to ask.
But beyond that, I really don't see how MS can play the same "Pity me, I'm in last place. Let me buy publishers. Let us compete!" line to try hoodwinking regulators once again, because they're going to look at what MS has and say, hey, you already have Zenimax AND you have ABK. You're telling us you
STILL can't compete!? What's going on with your management? Why are companies a puny fraction of your size able to outperform you in the market in appealing to customers?
TBH I was worried at one point that MS getting ABK with slap-on-wrist concessions would enable them to buy more. While I still think it could signal a bad precedent and signal other Big Tech companies to try buying, I think in Microsoft's case specifically they aren't going to be able to buy another publisher for a very long time, regardless if they're still in 3rd. Because in actuality, they'll be in spitting distance of Sony's PS annual revenue if/when they acquire ABK anyway, so they'll leapfrog Nintendo in gaming revenue and can't just suddenly say "Oh we meant third-place in gaming profit the whole time!!", because they never meant that whatsoever.
According to some their PC ports strategy, their 'lack of' Sony communication/marketing, the 'awful' Jim Ryan job and the 'Microsoft monopoly' are killing PlayStation.
Yeah, sure. The reality is that they are performing better than ever did.
Still think bringing the marquee non-live service GaaS titles to PC at the timing frequency Sony's been doing with a few games cheapens the prestige image of PlayStation as a console brand, and I think that is very important in helping ensure brand faith which is enabling them to break sales records.
And Microsoft buying out big publishers does hurt Sony to some extent since that removes a publisher Sony can openly work with as a platform holder, for exclusivity deals, marketing deals, co-development of new games etc. They would have to go through Microsoft for approval of that and there is 0% chance Microsoft would ever allow those opportunities for a direct competitor in Sony.