Not only Microsoft as a whole is already a much larger company to Sony
With regards to this industry, it really doesn't matter.
Yes it does matter. It still gives them advantages, from the wealth and influence their other endeavors amass as well as technology being directly related to gaming. These matters don't exist in isolation.
This makes it harder for upcoming innovators to compete, when that is what they have to face (or be bought out by).
On top of that, it seems like a remnant of Console War mindset to consider the ideal of the market to be a 50/50 or a 33/33/33 split.
That is the ideal. It means each one has to try their damnedest to earn the dollar of their consumer.
It's shortsighted to assume Sony, Microsoft and Nintendo is what this industry will ever be and it's the most competitive we can expect it to be. In fact, letting them gobble up any other significant publisher is an obstacle towards more competition. Nevermind that even among those three, third-party developers create an incentive to make their platforms appealing beyond simply being the only place that has that game. Features and services.
Yeah, they've got this game Starfield coming out, plus Hellblade II, Fable, Clockwork Revolution, South of Midnight, etc. But games just take so long to make that it takes forever to make up for a deficit they created last generation.
That is the business that they are in. Lets see how they are doing and how much they need more when these come out. Why should they acquire more if it isn't even proven that they are handling the others well? If anything, those layoffs are not a good indication.
It doesn't make the market better for the customer, but it's far worse if Sony's lead is so immense that a console manufacturer doesn't profit from making consoles.
Worse for who? Nintendo's consoles are profitable and Microsoft can definitely afford to sell units at a loss so that they can sell games, which is the same that Sony does. And is it better for Sony and Nintendo customers if they lose access to third-party games because Microsoft gobbled them up? Sure it would be better for the customer if Microsoft made good games that made their consoles a more appealing option, but gating existing franchises isn't helping them in any way.
I see a lot of these arguments are ultimately taking pity on Microsoft, for being behind, because it should do what is more profitable to it, but they don't actually help the customer any. It's funny to see this "poor little Microsoft, they have it so hard" when Nintendo is a smaller company with a weaker console under the same difficulties and they are doing better than them. Of course you don't hear of big acquisions from Nintendo because they don't have as much spare money as Microsoft does, which it can take from profits of other segments.
