> Microsoft has said that they don't see Sony and Nintendo as competition
They all say this and … that’s just marketing/bs. How in the world aren’t they competing ? They are all battling for a limited ressource which is your video game budget.
In the case of Nintendo, they've agreed to support cross-play, which Sony refuse to. And their consoles and brand are very different from XBox. Very few people are buying a Switch instead of an XBox or gaming PC; they're more likely to be buying it as another way of gaming.