You are not including the things he said afterward in the evaluation of what argument he is making. He saying that he wants the total gaming market to grow, and for Xbox get their share of the growth.
MS narrowly focus console war just trying to steal PlayStation customers isn't good for anyone long term, especially third party partners. That seems to be his point.
I think worrying about PlayStation is the ignoring other places of growth for the, PC, mobile, cloud.
This has been consistent with other things he has said. Executives say things like this all the time. Microsoft's CEO has said this too.
Just worrying about stealing PlayStation customers puts a ceiling on Xbox's growth. And Phil already said it is probably a fool's errand because so many people got entrenched in the PlayStation ecosystem last generation.
Microsoft seems to just want people in their ecosystem, buying games, and subscribing to GamePass. Console, PC, cloud, mobile, they do not care as long as they are growing their customer base.
Focusing on taking PlayStation customers means them just focusing on console. And Microsoft is looking beyond just console for getting players.
-Also, MS has had to push back against the BS Sony has been putting out there that MS is trying to spend them out of gaming. Privately they acknowledge that can't/won't happen.