I know everyone knows this, but the problem with "betting" on live service games, is that it's literally what you're doing. Getting one to take hold among a large group of users seems like a complete gamble. So throwing so much money and effort after the strategy (12 live service games??), again, feels like gambling. Make a bunch, and just hope a couple stick for that big money.
It just seems like a foolish way to run a business. Make the stuff you know your customers like, and keep getting better at that. Sure, trying to expand into new areas is fine, but ... seems like the way they went about it was too much. But hard to say from the outside looking in.