I really don't think MS is upset about how this gen has played out. The last PlayStation was a dominant system that no other console came close to even scratching. This time around the PS3 is in third place, and if everything goes well it might secure 2nd at best.
I don't understand how people think this is good for Sony and bad for Microsoft. That would be like a new Apple OS taking away most of Microsoft's customers and people trying to spin that even though the latest Windows OS is in last place, it might catch up to the Apple OS by the end of the cycle.