It genuinely feels like the Xbox division is being pulled in two directions right now. Phil Spencer, Matt Booty, and the games division want to keep making more great games with these studios, but the higher-ups above them at Microsoft were looking for ways to cut costs and saw these studios as expendable. They're not on the same page, and situations like this are a perfect example of that.
https://i.imgur.com/PmF1p9q.jpg