Some of the IPs that will now be under MS control:
From Activision - Call of Duty/Warzone, Crash, Tony Hawk’s Pro Skater, Spyro
From Blizzard: Diablo, Warcraft/World of War/Harthstone, StarCraft, Overwatch
From Bethesda - The Elders Scrolls, Fallout, Doom, Quake
From Xbox - Halo, Gears, Forza, Age of Empires, Flight Simulator
*All but CoD removed from PlayStation on future entries and CoD removed or made a lesser product on PlayStation soon enougth.
** Some of those are PC centric but MS will no doubt get them on their console soon, not to mention that Sony now also competes on the PC space.
How is Sony going to compete against all that? Horizon, God of War, Gran Turismo, Death Stranding and The Last of Us are not going to cut it long term regardless of their quality. They can't count on MS screwing everything they need to at least get close to the same amount of studios and get their hands on some big IPs.
Sony needs something like EA or Take Two or a combination of smaller publishers like CDPR/Capcom/SquareEnix. They should also consider negotiating with other publishers for key individual studios or IPs to secure/develop them on PlayStation like Battlefield, FromSoftware, MGS.
The PS5 gen is in the bag but Sony needs to start showing their hand fast because right now the long term isn't good at all.