I don't think you are going to see many on here that look at the situation and think Sony needs to do anything different, because we, as humans, are so fixated on the near term future. I've said it before, MS is playing the long game and they've been doing it since Xbone. They knew they'd get walloped that gen and no doubt this one too in hardware, but they know where the real money is at; subscriptions.
And not just for the single subscription in of itself. When you subscribe to one thing, and you like the product, you are more likely to subscribe to other services they have. In MS's case, if you like Gamepass, then maybe that will make you more inclined to subscribe to Office 365 instead of using Google apps, or use Teams instead of Slack, or use Windows instead of MacOS, the list goes on. We may not think these are related, but MS knows what it's doing. Their biggest profit off the gaming industry is getting the other business of gamers by earning their god graces via Gamepass. It's all a brilliant manipulation of our minds!
I predict MS is gearing towards it's ultimate attack on Sony and other competitors in other industries. What that attack is? An all in one subscription. For a set annual fee, you get unlimited access to Gamepass Ultimate, Office 365, paid Team/SharePoint features, their own version of Google One to backup photos, paid azure/VScode/Visual Studio/SQL applications for your development needs, and more. Maybe they even throw in discounts on all products for subscribers. Imagine getting all this in one annual subscription. It would make the annual Amazon subscription look like a joke.
This, I believe, is MS's endgame, and ultimately how they will justify investing so much in the gaming sector. They don't want to just sell us their gaming, they want to sell us their everything. Sony can't possibly compete with everything Microsoft will offer in this, and that is when the PS brand will start to collapse down to a far less successful (though still successful) product line.