It absolutely matters how much bigger Microsoft is, that's why it can pull moves like this to begin with. It's also short-sighted to think that it's healthier for Microsoft to approach Sony in such a manner when it comes at expense of the options customers have. The competitiveness of a market is not solely defined by how close the head-to-head is between the 3 biggest console makers. Seems like people are confusing market dynamics with the Console War, which is itself just a marketing gimmick that got ingrained into gamers' heads.
Good for you though that there are two high-end consoles. I don't see why you talk like there would be just one. Microsoft is not going bankrupt. But maybe, rather than letting Microsoft buy their way to the top as if that was any semblance of healthy competition, maybe you should question why they aren't making more appealing games with the studios they already had. Nintendo doesn't need to buy Ubisoft to be competitive, and in fact they can make games alongside them without any acquisition.
Comes to mind now. Why did you even bother couch that mention of consoles with "high-end"? Underpowered as it may be, Nintendo is competing in the same market. We know that there are people who forgo Horizon to buy Zelda. Sure it's better to have three console-makers competing than two, but here we have proof that there are ways to compete without acquisition, even when by all accounts your offering is the "weakest".
I don't follow you. Smaller third party publishers are thriving and growing, and they're multiplatform. The larger publishers are shrinking their year-on-year offerings and looking for buyers, of which there are few that can afford such a purchase.
Frankly I don't see what you are getting at with this. That there are other third-party publishers doesn't change that the third-party market is diminished by ActiBlizz's acquisition. Devolver and Annapurna may be lovely, but they don't have the size and output to replace it. Sounds like you are just downplaying ActiBlizz's importance as if we didn't just have a massive, long-awaited multiplatform release that is Diablo 4.
And so what if large publishers are looking for buyers? They shouldn't be allowed to sell, consolidation is bad for the industry. They can just deal with it and keep making games. even if Nintendo were to go and buy Ubisoft, it would still be bad for us.