There is no drop in first party releases. This is a weird narrative that just simply isn't true.What gave them the freedom to go all in on live service was a lack of a credible threat to their business model. As gamers people noticed the drop in first party releases but even now if you look at sales this had a minimal impact on that.
I still say companies are at their best when they can steal ideas and concepts from each other and improve upon them and are at their worst when they are monopolies that dictate how the market goes.
AMD quits on the high end graphics card market and it's no coincidence that the 5080 is the first 80 series card in a long time that is weaker than the previous generation's 90 series card. Undoubtable stuff like this will happen in consoles as there really isn't any competition anymore. When they vanquish their foes and no longer have to focus on acquiring customers enshytification happens.
If you count the third party exclusives it's even better. Idk why people are saying this. People just being dramatic.