I think you've hit the nail on the head. While Microsoft says it will honour existing contracts, it's reasonable to expect that new projects will be Xbox/Game Pass exclusive.

It's not yet clear to me that Sony will actually sell more PlayStation consoles over time. Supply constraints have not been kind to either Sony or Microsoft, but these consoles only just came out - they still have years of life left in them. It's very possible for Microsoft to overtake Sony in console sales thanks to an increasingly-valuable stable of exclusives across a wide range of genres.

Although I'm sure the acquisition will ultimately be good for the companies who are being acquired, I can't help but feel that this is only accelerates the trend towards industry consolidation. And I don't think that really benefits anybody - least of all the consumers.