Expanded too quickly, and their hardware/gamepass numbers aren't going up. I wouldn't be shocked if this applies to everything under Bethesda and Activision going forward. It will be curious to see what happens with their more traditional IP, as the only non-Bethesda game brought over I believe has been Sea of Thieves.
And Sea of Thieves at least made sense business wise; A live service, multiplayer game does better the more platforms its on. And it showed right away with how fast it moved copies on PS5. That's also something you can sell xbox players as a benefit since more people = game lives longer.
You could even argue Bethesda/activision makes sense as well. They were already mostly multiplatform, so why not just keep things as they are?
The real test will come when the big 4 are due new releases; Gears, Halo, Forza and Fable. Confidence in the brand is shaken but not completely demolished because there's no indication these games are going multiplatform...yet.
If i had to guess though, they'll see the increased profit from stuff like Indy, DOOM on top of stuff that already jumped like Sea of Thieves and go all in. The day Master Chief or Marcus Fenix appears on the playstation youtube channel in a trailer is the day the xbox brand is truly dead and buried.
And i'm not really the fanboy type. I play on all 3 consoles and i'm just more pissed off the decade+ investment i have in the Xbox ecosystem now might be worthless if they decide to go full 3 party and dump hardware. (Though if you had to ask me i do prefer xbox controllers/UI/etc)