Both MS and Sony absolutely produce their own games with wholly internally established studios. MS game studios existed before Xbox even.
I’m not sure what the rest of your point is even about, of course it makes sense for MS and Sony to short circuit work and risk, that doesn’t make anything better for consumers. The better option for consumers is for MS and Sony to build their own franchises and have good exclusives that way rather than taking existing third party franchises and limiting access.
Both MS and Sony absolutely produce their own games with wholly internally established studios. MS game studios existed before Xbox even.
I’m not sure what the rest of your point is even about, of course it makes sense for MS and Sony to short circuit work and risk, that doesn’t make anything better for consumers. The better option for consumers is for MS and Sony to build their own franchises and have good exclusives that way rather than taking existing third party franchises and limiting access.