All of this crap is Phil's fault.
For decades MSFT basically ignored Xbox as nothing more than a balance sheet footnote.
Top level probably didn't even "see it" since the whole division would have been rolled into a "consumer and electronics" subdivision etc, or some such.
Then Phil decided he wanted to be billy big bollocks, and initiate a gigantic fucking acquisition of Activision Blizzard.
Now you have the entire Group management team engaged, batting anti trust regulatory concerns to get the deal over the line and a ton more scrutiny on a business they find interesting but generally don't understand (but think they do; textbook management Dunning Kruger).
Now the Group is setting division level goals because reporting visibility is now completely crystal, as it needs to align to M&A portfolio visibility as the Group CFO seeks to make a long term return on the investment, turn the balance sheet asset value upwards and thus make themselves look good to public investors on their earnings calls.
Hence the "Xbox! You lot better get in line with all this AI bullshit! We think your business is too expensive and McKinsey have told us how much we can save from shoehorning AI all over your operations, from that $42.4 report we paid for, that may or may not have been generated on their side by ChatGPT, I'm not sure…"
Hence the "we're not seeing enough commercial focus in driving wider operating margins across these businesses. I don't understand why you can't just fucking slash your cost base by 30% to solve that, and… what? … wait what do you mean that next years sales forecasts are being halved because you now forecast a ~60-70% Metacritic as you no longer have the dev talent and capacity to ship at quality to guarantee a strong product and long tail..? What's a Metacritic? You're using silly words I don't understand, nor care about.. I have no time for managers that just make excuses. I'm just going to bring in a new studio manager and CEO for you from MSFT. Where's that CFO who killed three divisional business lines across MSFT over the last few years and continues to fail upwards? Oh and Doug's intern? They'll do…"