Ben Thompson of Stratechery has been writing about this for a while - a big part of it is Microsoft is attempting to shift their product into a subscription model for content with Xbox game pass which is likely a lot better for consumers (and for Microsoft due to azure), it’s why they acquired activision. This is a good idea and Microsoft is doing it correctly (as opposed to Google stadia which had the games over the network idea, but stupidly kept an old business model that made no sense).

Sony sees this as a competitive threat and EU regulators are bad so don’t understand what’s happening - their restriction of the activision sale is itself anti-competitive because it locks in the existing business model (which is favorable for Sony) and reduces real business model competition which would benefit consumers.

All this focus on exclusives is dumb and part of the old business model.