Errr...
I think their business is far from collapsing, I also thing there are absolutely zero similarities to what they do and what MS is doing/has done. There is a very very very big difference between releasing your games day and date on other platforms and releasing some of them 18-24 months later on other platforms.
And do you really think someone that has only $450 to spend on a gaming platform is going to buy or build a PC and skip the PlayStation because the games may come 2 years later?
People don't understand that two companies can have the same or similar strategy but different execution.
More importantly, I don't think Day 1 PC is what hurt Xbox rather the lack of AAA games and Day 1 GamePass is what hurt them. Day 1 GamePass meant they had to limit their budgets, something that Sony mentioned and were mocked for (again different execution and strategy).
People like to convince themselves that people are clamoring to buy PCs to game rather than consoles, but x,y,z is holding them back. It just isn't true. Consoles have never been the most powerful way to play games. Arcades were always more powerful. PC was always potentially more powerful. Just like handhelds have never been the most powerful way to play. Consoles create a boutique experience that people want. They also offer the best performance for the dollar. That isn't going to change.
That being said Sony realizes gaming isn't just console and they're sleeping on markets by not being involved. That's why they're involved in VR, that's why they're getting involved in PC, and that's why they'll return to handheld, and enter mobile.