Oh please, layoffs like this have been rampant through the whole gaming industry
Yes they have. Once or twice. Some layoffs happen. However this is just one data point for Microsoft. One data point among many repeated layoffs at MS. One datapoint among full studio closures. One datapoint among Microsoft currently attempting to divest 2 whole studios which they've aquired in said spending spree. One datapoint among the current CEO saying that Microsoft's strategy took them from 30% profit margin to around 4% this year.
One datapoint among the Xbox CEO being replaced this year because despite your "oh please" comment, even Microsoft's CEO agrees they royally fucked up.
So spare me the pity for the managers.
namely moving away from console production to game production
Yes we can tell that by the cuts they are making and the divestments of studios they bought. I think you're making my point for me. If Microsoft's grand plan is to make games then the executives are idiots given how they are executing that grand plan.
But look at the past, it has always been like this, large studios going defunk.
No. This isn't a large studio going defunk[t]. This is a large studio bought by a mega studio, bought by one of the largest tech companies in the world, only for then to have massive cuts across the entire gaming division after a double digit billion dollar spending spree all the while shaking up the executive team, changing strategy twice on what an "xbox" and how they distribute games.
You're looking at everything with an insanely narrow lens. If id were independent, or damn Zenimax independent, everything you said would be true, but in context of what is going on at MS it's just not. There's nothing "normal" about what's going on at MS right now.