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Manlytears on 29 April 2023
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Manlytears said:

IMHO,
We need Xbox to put Playstation in check.
MS needs Xbox for their "cloud gaming future".

MS Azure is one of the 3 biggest and most advanced cloud providers in the world, at the same time, they are the only tech giant with a strong line of first party of video game Studios and IPs.
Xbox is here to stay, It's a gigantic advantage of MS in the cloud game market, but... This is not enough.

Xbox needs to beat Playstation, or at least become Playstation equal, not because of Sony, but because of the possibility of another big tech buying/joining forces with Playstation/Nintendo.
Just think about this possibility... Cloud gaming becomes the norm, Xbox becomes king because of Azure, while Playstation/Nintendo lags behind. Amazon or Google steps in, makes a irresistible offer and now Playstation/Nintendo have a big tech on their corner. Xbox money and Azure advantage are now gone. All that matter now is the content. Is Xbox better than Playstation/Nintendo at making games or capturing public mindshare? No? Yup, forever number 3 then.
Xbox can't become 3° party under Sony. They need to do better and Win!

Not MS's problem to keep PS in check. 

you didn't read that the second part of what I wrote. I'll summarize:

Microsoft needs to prove that the Xbox is a platform of equal or greater value than Playstation/Nintendo, otherwise it will always be at a disadvantage. They will not be able to do this by being a third party, on the contrary, if they distribute games through the Playstation/Nintendo they will only contribute to strengthening the fame, reputation and mindshare of rivals in detriment of the Xbox brand.
In the "future" where Cloud Gaming is the main form of distribution, Google, Amazon (or other big tech) can partner/buy Playstation or Nintendo and surpass a "Weak Xbox". Microsoft shouldn't take that risk, they need to strengthen the Xbox brand and make it stand out, leaving the console business as a "loser" is a mistake.

So yeah.... putting PS in check, and making Xbox strong is MS's problem.