They lost big initially because of their own hubris. Sony and MS are both not looking to be the Xbox One for the coming gen which is why they are both playing price-chicken waiting for the other to budge first.
They have difficulty explaining thier service too. I am avid gamer and I have no clue how many games I will be able to dowload if I become a subscriber. Even thier online store does not have clearly communicated details. I am not sure what there end game is with this service.
I have heard that it is now unplayable in countries which do not support handful of third world countries not recognized by Sony like Pakistan. Steam is a true global platform.Then they cry that console gaming is dying.
You reap what you sow. This is what happens when you take away choice from consumers. Even with 88% split going to developers, they can't recoup costs. Meanwhile, Helldivers 2 is a massive hit for Sony thanks in big part to Steam.