Sony doesn't have a monopoly on creating amazing games; there's no hidden formula. Any well-funded team could potentially replicate a Sony Exclusive.
Take Spider-Man, for example. It's set in a fixed open world that isn't a sandbox. It's not like GTA or Watch Dogs, where complex AI and simulations are at play. The open world in Spider-Man is just a backdrop for missions, with minimal interactions like waving or dancing at pedestrians. There's no day/night cycle or weather.
We all know the thousands of things you can do in GTA, but Spider-Man doesn't offer that kind of depth. It's just a static open world backdrop.
Epic demonstrated how easy it was to create a similar Spider-Man world in less than a year with a smaller team compared to AAA devs (Matrix Awaken).
If Phil from Xbox had a better strategy, he could've taken some of that $70 billion budget and assembled multiple teams of 50-100 devs each, with the sole aim of creating competitor games for every Sony exclusive that comes out. For instance, after seeing Spider-Man, he could've partnered with DC to make a Static Shock game that closely mirrors Spider-Man's structure.
Spider-Man essentially combines an open world backdrop, an origin story, a captivating plot, and enjoyable, fast-paced gameplay. This formula can be replicated.
As the saying goes, good artists copy; great artists steal. Tech companies are well-aware of this (just look at phone lineups), but other industries seem oblivious.
If Phil had created a Static Shock game, it would've been a huge hit!
The same applies to competitors for Uncharted/Horizon (Lumen in the Land of Nanite has a Tomb Raider vibe and could've been a system seller)
and God of War (a visually stunning cinematic adventure that is basically just walking and fighting).
These games can be duplicated, and with teams working together, there's no need to start from scratch every time. They could reuse materials, shaders, logics, equipment, rendering tech/setups, and more.
Phil's approach really let Xbox down. Phil failed Xbox.