I don't think it's played; it's that idiots brought low-margin businesses into a high-margin enterprise b2b saas company (that exploits a monopoly too) and are shocked that gaming is not going to give you 30% or higher margins. Nintendo is super disciplined and a bad year for Microsoft margin-wise is one of Nintendo's best. If Nintendo can't regularly hit 30% margins, nobody can, and certainly (as you say) people who don't game and don't know a single thing about gaming except speedrunning a tutorial aren't going to do that.
Yeah. Xbox is profitable despite how terrible it is in terms of game exclusives, just not 30% profit margins profitable. Instead of focusing on that they buy studios to close them and then wonder why they don’t have better margins.
And isn't that just so typical? Every industry right now is headed by money extraction experts, not experts in that industry.