Jason Schreier is a muppet. Xbox is a mess, but that doesn't mean they don't have a plan nor does it mean that plan won't or shouldn't change as they collect more data.
Schreier is an unserious person.
Microsoft sought to buy Bethesda (zenimax) and ABK in order to bolster their first party offerings. That was the plan.
Starfield didn't deliver and is one of the first but not the first major Bethesda game to not deliver. Maybe of this magnitude.
The ABK deal was held up by regulators for longer than they had planned. By the time the deal went through and with the arrangement for ABK and the cloud deal, their original plans were decimated.
Meanwhile, XSX and XSS sales were tanking. They had planned on revitalizing a number of franchises and the pandemic happened. This is particularly troubling for them because of the way they manage contract workers. All of these games were delayed and the contractors were certainly scattershot.
They wanted to release a streaming stick and then they realized they had missed the boat on that and they'd end up taking a loss selling the sticks themselves and that they were better off partnering with Amazon and eventually other platform holders. That's just collecting more data and adjusting your plan.
They had initially hoped GamePass would be a loss leader and allow them to build a massive consumer base across console, PC, and Cloud, but people didn't bite on the subscription and they flat lined, largely due to poor XSX/S sales. Again they had to pivot.
Now that they own Zenimax and ABK, their operating costs are entirely too high which is why they're no longer willing to take GamePass as a loss leader, why they're cutting employees they see as non-essential, and why they're putting games on PS5 and Switch.
If we're playing poker and you keep getting dealt a bad hand, yeah, you might play the game differently than if you had stronger hands.