Personally, I think that all these acquisitions Microsoft made gets Xbox on Nintendo's and Playstation's level IP wise, but I don't think Nintendo or Sony need to go all out acquiring larger companies.
For Nintendo, I don't think Nintendo needs to do anything at all as a response to this. Their first party IP list and exclusive lineup for Switch is extremely well rounded. They have single player, local multiplayer, online multiplayer, more mature games, games for everyone, and successful games that bring in lots of continual revenue. Of course, there are older series' that I'd like to see return like Custom Robo, Battalion Wars, Eternal Darkness, Wave Race, the Excite series, Kid Icarus, Sin and Punishment, etc., however, they're still putting out a lot of games and have a very diverse lineup in comparison to their competitors.
For Sony, I think they'll need to shift strategy a bit. They've been laser focused on single player story driven cinematic mature western style experiences, which they're extremely good at and those games are very good, however, they're lacking in most other areas. IE, since 2015 there have been 3 Splatoon games but 0 Killzone games, 0 Warhawk games, 0 Resistance games, 0 Twisted Metal Games, 0 Socom Games, etc. And that's just shooters. They're missing new exclusive experiences in a lot of genres that they had represented in Playstation systems prior to PS4. I still remember Playstation being the first brand that came to mind when I thought about RPG's but that hasn't been the case in over 15 years. They have the IP, they could put out a new Freedom Wars, a new Legend of Dragoon, a new Soul Sacrifice, a new Wild Arms, a new Jade Cocoon, etc. but they're so laser focused on big budget cinematic western style story driven games that they forgot about the extensive IP list they have.
So what Sony needs to do is hire on new teams and get them using their long list of IP. They don't need big publisher acquisitions, they need smaller and mid sized teams to work on their own list of IP. Sure, Microsoft has locked down a lot of shooters and western RPG's. Well, combat that with your own shooters that people would LOVE to see new entries in and your own RPG's that people would LOVE to see new entries in. I'd take a new Socom over a new Call of Duty and a new Twisted Metal over a new Overwatch ANY DAY! You have the IP, use it!
