But that's on Microsoft then, right? If they are willing to spend time, money, and effort, they will get high-quality AAAs. If they instead keep funding "passion projects" instead of funding big AAAs, then they don't have any right to complain that they don't have enough AAAs.
The fact is that Xbox now has more studios and developers than PlayStation Studios.
Thats one other method, though we have seen many large dollar projects with many companies fall flat regardless of intention.
Even if you take halo infinite for example, while I personally was happy it was lauded as a failure. Ms put tons of money and time behind it.
The number of studios may increase chances but only if they are of high pedigree.
Your saying sony has less studios and ms has the advantage. So let's say your starting a huge new console company, and you are allowed to pick either ms or sony's studios, you must be saying then you would pick ms's studios? I doubt it, probably not even a hard decision.