You're mixing up Microsoft with Xbox...
They are trying to tank the Xbox Division and Microsoft Games.
No one said Microsoft is dying, they are a trillion dollar company, but they are definitely doing everything they can to exit the console market and Xbox as a whole, there is a reason, they were trying to rename Microsoft Games, instead of Xbox.
They want the Xbox gone! Same reason Xbox Game Pass, is now just Game Pass...
Also the CFO of Microsoft, herself, said she is forcing Xbox Division to do all these changes, because they owe them money from all those studios they acquired and ended.