Having once worked there, what happens at Microsoft is that strategies seem to get radically changed really fast in management team meetings. Like, overnight. The planning has been, however, quietly in place unbeknownst to the operative management. Then the decision is tabled, plug gets pulled and the machine unceremoniously executes a major division.
Statements are already written, operative management is swiped very quickly so that they can't collude with other employees, poach them, demoralise them, grab information…
Here the ongoing thread in the mgmt team has been that "we need to do something to this embarrassing distraction on our annual reports". Scenarios have been considered, and the chosen one seems to be something along the lines of "burn it all down, install a caretaker CEO."
There is certainly no Magnus anymore, and possibly no GamePass either. There are a handful of games that remain, and studios will be either axed to moved under Activision that can then be spun out as an independent gaming company sold to the Arabs at a huge discount. Division cleaned, annual reports improves, some cash brought home to fund Altman's escapades.