How many releases is a very different number than how much profit. Only a few of Microsoft’s releases likely account for a sizable percentage of the entire industry’s profits in a given year. The fact is that investors saw dollar signs, and the industry expanded to a level that the market doesn’t actually sustain. How many metroidvanias do you want to play in a given year? And given that Animal Well and Prince of Persia: The Lost Crown came out this year, how likely are you to play Tales of Kenzera: Zau after you’ve bought and played those? Mass layoffs are not a good thing, but it’s a mathematical consequence of how much companies are permitted to expand relative to what people actually buy.