Microsoft already tried to take on Twitch, with Mixer, and failed. (Gamers will probably be wary about jumping onto Microsoft's next doomed platform.)
And anecdotally, Discord replaced Skype for a lot of people in the gaming community, and I don't see people leaving it very easily.
It seems like Phil Spencer had a meeting with the affected ex-employee but nothing came out of it[2].
Adding on to that, a leaked town hall video really painted a grim image of the company and the management internally.[3]
[1]https://twitter.com/MilanKLee/status/1274830702538821632
[2] https://twitter.com/MilanKLee/status/1286008870935179266
Having live streaming built into the xbox platform + tiktok as a brand and audience would be a much more power combo than just mixer alone.
I don't believe Mixer was shut down because of bad management though, if the people in charge weren't getting results, then Microsoft would have just replace them.
I would tend to agree that management not getting results could be replaced. It could be that bad management was a symptom and not the cause.
[1] https://arstechnica.com/gaming/2020/06/microsoft-is-killing-...