Street fighter V 

Exactly.  In fact, one could make the argument that M$'s stable of 1st party exclusive franchises are much more crucial to their success and have a much greater impact on console sales than Sony's do, because IPs like Halo and Gears do far more for the sales of Xbox consoles than many of Sony 1st party exclusives like Killzone, God Of War, InFamous, Little Big Planet etc have.  Only Gran Tourismo has been the consistent 1st party console mover for Sony for every PlayStation generation.  Beyond that only Naughty Dog's Crash Bandicoot (when it was Sony exclusive) and Uncharted IPs have really moved consoles on a similar level to M$'s heavy hitters.  Even Jak & Daxter is way down the list on the PS2 software chart despite being a fan favorite IP.

Actually, you are so wrong on this it is remarkable. Being first or 3rd party has no relation to IP ownership. It's relative to a publishers relation to the hardware they publish on. Here is the definition in relation to video games:

Adjective

first-party (not comparable)

1. Of or relating to someone directly involved in a given transaction, such as a buyer or seller.
2. Of or relating to the plaintiff in a lawsuit.
3. (video games) Of a video game, developed or published by company responsible for the platform on which it is released (or its internal developers), as opposed to third-party.

Microsoft is the only first party publisher on Xbox consoles. Xbox. Xbox 360. Xbox One. Full stop. The couldn't be 2nd party of 3rd party if they tried. Unless you want to argue that fact. Anything Microsoft publishes on Xbox consoles is a FIRST PARTY GAME. That includes games from Studios and IPS that don't fall under their ownership.

At best you could say Insomniac and the Sunset Overdrive IP are not first party (they are not second party either), they are 3rd party. But the Sunset Overdrive videogame that came out last year is first party as it falls under Microsofts publishing arm.

You're making a point that falls short to example. I gave you examples...here...I shall give you more.

Microsoft's first, second and third party studios (as well as IP's are listed here.

https://en.wikipedia.org/wiki/Microsoft_Studios

 Microsoft published Ryse...but it was not a first party game nor venture. Quantum Break is....why? Because they own the IP. Any commission that they own the sole rights to is first party. Microsoft is the first party as in they are the console maker or buyer engaging in a transaction with a third party. That denotes being a primary entity in a transaction . I'm even using your number one of your example to get this through to you that I am not speaking about the person but the assets said person (because a corporation counts as a person) owns. Context is key here.  You will see what I mean when you check out that link I provided. Once again (and for the last time) I am only speaking of Microsofts first party as in their owned studios and intellectual property, not the first party as in the primary person (which again would be Microsoft).

This is a redundant example, neither Activision or Disney manufacture Xbox or Playstion consoles so could never be anything but 3rd party unless Activision or Disney start manufacturing consoles of their own.

We've never spoken about this. so It's not redundant. I was just giving you an example of the power wielded once one owns an IP. Once first party...more than likely it will stay that way.

What are your thoughts on this years lineup given that The Order, Bloodborne, Until Dawn and The MLB license were all products originating outside of Sonys internal studios? That's a year and a half gap between any idea conceived by them, could you explain how that shows Sonys 1st party is covered during that period of time? This is assuming Knack and Driveclub were "bases covered" quality.

The order is first party co-developed project led by long time second party Ready at Dawn. Both Bloodborne and The Order were was co-developed. Sony owns the IP...meaning its first party. A third party is a contracted entity who works outside of Sony and makes games for them, but is not beholden to them. Sony makes so many IP's that even though there are errors there will definitely be quite a few gems. Once again....their first two years are generally the worst. As I said if you havent noticed some of Sony's top second party devs emulate Sony's signature style they built when they bought Naughty Dog where cinematics and gameplay intertwine. 

What's your definition of AAA? Sales or scores? Because Knack and Driveclub garnered neither and every other new IP on PS4 up until Holiday 2016 comes from third parties.

AAA is just a game with a high development and marketing budget. 

In fact the only new IP of note on the Horizon... is Horizon, which was born out of Killzones declining stagnent receptions then a drive to create new IP.

Well...perhaps it was time they tried something new. Thats the great thing about Sony. Even after a while they let their devs try something new. You see if Microsoft struck oil they would keep their devs on duty to that game forevermore. This is the primary reason why bungie left them.

Its not a timed exclusive.

Exactly. The more you force people to think, the more it sinks in.

Project Spark, Sunset Overdrive, Ryse, Quantum Break, ReCore, Scalebound, and Sea of Thieves. 

Ori and the Blind Forest.