I mean, he isn't wrong? They lost any form of library building for the consumer in the Xbone era, which is incredibly important because it allowed people to have backlog content. Now you've got people on PlayStation that have BC (to a point) with their built up library, and you have to convince them to either buy a new console or trade the one they have in and go fresh. That's fucking hard to do.
I'm thankful I never really had a PS4 for long, so my library is heavily Xbox/PC/Nintendo and I'm confident there will still be titles made for Xbox. I also understand where Phil is coming from, which of course those here will construe to their own storytelling needs. I've got games for years to play, I'm happy as a consumer with that approach.
Realistically, who here on PS5 would have even bought or traded in for the XSX/S if there suddenly was a deluge of titles? I'd wager not many on an enthusiast forum, because we are the hardest to swing when it comes to shifting playstyles and platform. There are already a crap ton of games on Xbox available right now, and that hasn't even turned the dial. So I don't think it's the actual content, I think it's the name.
See I'd argue against that, as it's clear the actual amount of content is there on the Xbox platform. It's just people don't want to switch if they haven't already, as it's either a) leaving behind a large library of games on an existing platform or b) they can't afford to have more than one platform/swapping. Game Pass has content, Xbox has games, even first party. Just no one wants to drop their library.
Also the whole "yeah well their PC focus killed Xbox" is bullshit. There are still far and away more console players that are not just going to buy a PC, and yet still want access to the catalogue of games on offer. For me I was just lucky I was PC before I met my fiance, who is an Xbox fan. So I had that platform well in advanced and have continued the upgrade trend.