Understand and respect that you think that, but...
The Microsoft CEO stated very recently (January 17) that they were excited by and happy with their position in the gaming space, and that Microsoft was 'doubling down' on video games just a couple of months ago (October 24).
You could say that's just spin, and I suppose it could be, but the fact of them investing $69bn (the largest investment in the history of gaming) AND making recent public declarations suggests not. It absolutely suggests they are all in to compete. I don't think anyone, even Microsoft would deny they wish they were in a better market share position right now, but what I'm struggling to understand is the certainty that they are withdrawing, and that 'it's over' based on nameless... I'm not sure you can even call them leaks tbh... versus the more rational conclusion that the unprecedented spending in this area from the one of the world's largest corporations is more indicative of a determination to throw money at the problem rather than pull their horns in.
If this was a debate about whether that is going to be good money after bad I'd think it had more validity, but this all just seems like either a fanboy nightmare or wet dream, depending on which color 'rat' you are. None of us know, but if you were playing the odds surely one is a safer bet than the other? And the inevitability of either a wet dream or a nightmare is ultimately that you wake up and realize it wasn't real after all.