The size will only matter when new and Xbox/PC exclusive, games release and are large hits. In fact, until COD is exclusive, the Activision acquisition will remain largely inconsequential. But, all of that really has nothing to do with what my overall point.
The point was despite who has more money, companies with less are out there making moves. One of them will never “have it all”.
If Sony continues to get smaller studios with no IP like Deviation next or something and MS goes and gets Square and Capcom and SEGA and keeps all those IP off PS it will shrink to the point of irrelevance. Maybe like Gamecube levels if they're lucky
This is incredibly unrealistic on both points.
There are a lot of barriers preventing MS from doing that in the first place.
Legally, they would have trouble. Even the Activision deal is fairly likely to not go through, it's a lot closer to a coin flip than it is to a guarantee. Various governments are going to push very hard against major consolidation. It's only going to get harder for them afterwards.
MS can also only buy companies that are willing to sell. Capcom is a family owned business for example, they're very unlikely to sell.
MS is only going to buy things that they think have value. Warner Bros Interactive is a pretty successful publisher, but they're probably not going to get sold, because the asking price is too high for pretty much anyone. It's a lot less risky to spend a billion to try poaching a lot of those developers than it is to spend 4 billion to buy the gaming business outright.
Sony is also not going to be complacent.
They've had a lot of success with building their brand. Sony Bungie Deal Generated More Twitter Buzz Than Microsoft Activision Deal