It seems to me that Microsoft is really just a very poorly run company. Windows holds a virtual monopoly on desktop operating systems which is why it keeps getting slower, less efficient and more bloated while constantly eroding user control with "features" nobody wanted or asked for such as forced updates that break functionality and crash systems with increasing frequency and severity.
This is why Xbox failed. Riding on a wave of uncontested revenue from Windows and Office 365 the company has long lost all knowledge on how to compete with other products. They treat Xbox as if it were Windows, an uncontested monopoly where they can just shove whatever unwanted garbage down their customer's throats because they have nowhere else to go.
Except Xbox isn't Windows. Their customers do have somewhere to go and most of them, and I do mean most of them, already left for Playstation.
Microsoft bet big on AI and, as it turns out, a lot of their users don't really want AI saturating every aspect of their daily lives. But Microsoft already made these bets so they're desperately trying to shove it down the throats of their customers any way they can, despite their customers vehement opposition.
They already made these bets and they absolutely need those bets to succeed so you can expect Microsoft to shoe horn AI into every single product they offer. Next thing you know AI is not only going to be making the games, but also playing them for you too.
This is why many consumer facing products MS develops fail, usually in short order. They really only cater to their enterprise customers which is why most of their products tend to be boring and uninteresting. The fact that they backtracked on their AI everywhere garbage suggests that even their bigger enterprise customers didn't want it.
Nevertheless, they're still trying to sneak it in everywhere they can because they already placed their bets on AI. Why anyone would listen to someone about the future of technology or the future of consumer products when that someone keeps developing failed products is beyond me. Obviously they don't know what the market needs, wants or where it's headed.