Hate to break it to you but Microsoft isn't afraid of anything Sony does. They have enough cash and cash equivalents on-hand to buy Sony outright and still have like almost $30 billion left over.
The money argument is lazy. One of those things ppl try to little brother Nintendo/Sony on, but nobody knows how much of the pie the Xbox division actually gets.
Like I could ask, since they have access to all that, why has their output been pathetic this last half decade? You wouldn't know.
MS more than likely isn't putting too much more into Xbox than they can recoup from it, they already tried being aggressive with the 360 and all the exclusives snatched up that gen, just to erase everything they did the next gen. They're not spending Azure and Office money on fukking Psychonauts lmao.
Which is why they're pissed at Apple for not allowing Xcloud in the app store, Xbox is missing revenue from an extremely large base and nobody's buying actual Xbox games, just gamepass, so that's why they need it everywhere you can play a game.
That's all Xbox is to MS right now, another subscription, it obviously had potential to be a lot more. Let 1 earnings report pass and those subscription numbers dip and see what happens to Xbox, they don't need gaming like Sony/Nintendo and it sort of shows in the product.