A software company with less than 500 employees and more than 100 MUSD in annual revenue and you're asking me to please think of the vulture capitalists that gutted it?
I'm not saying to sympathize with the MS, but they blew a lot of money on a worse game than doom eternal or 2016 doom. It's just not penciling out I guess.
Game companies are always going through this and the only way to stay around a long time is to stay lean (like valve) and/or find a really lucrative business model.
Notably MS is in a business other than games, so another way to frame this is "MS is losing and Valve is winning".