So Redfall was set up to fail, and you make those people fall on the sword, and then Hi-Fi Rush is a game people clearly want more of and could have stood to cost more than $30, and you let those people go too instead of hitting the ground running on a sequel? What is wrong with you, Microsoft?
The way they see it, their best interests don't involve those of the game studio. Buying a studio does two things. It gives them a new business to latch onto and suck all the money out of quickly, and it eliminates competition in the gaming industry. Killing the studio still meets both of those goals. And then they just move onto the next one.
I mean, yeah, if you're expecting intelligent long term decisions, those expectations are still too high.
Remember: This is the group of people STILL actively trying to cover up anthropogenic climate change. Something that not only threatens their long term profitability, but literally threatens the planet with extinction.
Going by MS‘s track record the last couple decades, it‘s all business as usual. It‘s expected from them to eventually close everything down they incorporate into their ecosystem. Sometimes after draining it or letting it rot away, and sometimes sooner than later.