Bet morale under the entire MS umbrella is poor right now. Everyone must be looking over their shoulder. It's not just MS of course, but Tango being closed is such a surprise that it must make almost everyone that isn't on a AAA+ high-earner feel like their days might be numbered regardless of the merit or worth of their work.
Crazy thing is this probably saved very little in the grand scheme of things and just allows them to edge out those shareholder targets.
And "spread thin" my arse... Tango especially were an asset that should have been nurtured further and if there are issues, work it out. They'll add value to the company in ways that aren't always immediately apparent on the balance sheet. There was likely loads of potential there that will never be realised under the MS brand now.
They're just going all in on sure things and aren't taking risks at this point. Xbox will do fine for in the meantime, but it'll wear thin once all we have left is homogenous slop. The money men are securing their loot, extracting everything they can for themselves now and don't care if the ship goes down later.