Remember what is possible, and what is chosen. An executive chose greater personal wealth over the lives of all of these people.
Nintendo's top executives take temporary pay cuts to atone for a dive in profits following disappointing sales of the company's Wii U games console.
www.bbc.com
There was another option. It's one that has been taken in the past, to great success.
Nintendo was able to recover from the Wii U because they understood they must invest in their studios if they want to survive. A smart executive would take a pay cut to ensure the company's survival. Microsoft, and really much of the west it seems, is only focused on how the quarterly report looks. Killing the company and ruining lives to make sure the line doesn't go down this quarter is what they do.
Nintendo is now doing very well, with the Switch and now Switch 2. Microsoft threw money around and did nothing afterward and now they are realizing they spent too much and will suffer the consequences because their greed does not allow them to have less unimaginable wealth right now. Their hardware sales will continue to plummet as will their software sales. Xbox is on the way out, at best they will go the way of Sega.
This is the consequence of short-sighted decision making. By planning no more than two seconds ahead, you cannot guarantee longevity beyond those two seconds.
I'm about to discuss this on a broad topic, none of what I say is to belittle the ramifications of people being laid off. People losing jobs is never a good thing and should never be overlooked. I'm just discussing the platform and the reasoning behind certain decisions (from my own perspective and opinion.).
I'm going to be the contrarian here, but Xbox has 40 games in development
The studios and games that suffered these layoffs were in development for 6-7+ years without clear release dates. Whether due to poor management or not, this is what likely led to them being a target of closure and cancelation. It is highly likely Everwild, Perfect Dark, and Zenimax MMO were still years from a release and never capable of return on investment.
It should also be said that Nintendo is exclusively a gaming company and does not answer to a larger corporation. Satya Nadella is not taking a paycut for Xbox when he has overseen Microsoft becoming the largest company in the world worth almost $4 trillion dollars.
You are implying that the Xbox hardware becoming less centralized is somehow a bad thing. It's a good thing that we have more options to play the games how we want and where we want. There will be another 1st party Xbox to likely set the standard for any 3rd party Xbox-like device releases; just like the Surface.
The end-game is likely to be an AMD APU that allows any Windows PC to run Xbox OS and all your existing Xbox games, including backwards compatible games. The truth is that Xbox does not make a profit on their hardware and the more people they can sell software to, the better. They seem to understand that what ultimately matters is going to be an ecosystem and locking to a single piece of hardware is a detriment in the long term.
I think it is naive to look at Microsoft's strategy as short-sighted just because of a round of layoffs that barely effect the massive amount of games that they have in development. Especially when Sony continues to eventually follow Microsoft's "short-sighted" strategy repeatedly.
I am not defending Xbox and Microsoft's actions; they mismanaged studios to an insane degree and management is ultimately at fault for the failures of these studios. In my honest opinion, I think Phil Spencer should step down just from the insane failure of The Initiative alone. An "AAAA" developer that never released a single game.
I would also warn against idolizing any video game company; Nintendo's executive were extremely kind to sacrifice their own pay to maintain positions in their company during a drop in profit.
However, that are also the same company going through multiple anti-consumer controversies at this very moment. Some even leading to lawsuits against Nintendo. They are also the same company who has mercilessly harassed the Palworld developer with broad and absurd lawsuits. Not to mention their insane reaction to any fan projects related to Nintendo properties. Going way beyond what is necessary to protect their own trademarks. They even attempted to sue a grocery store over their name, a lawsuit that they lost.
None of these companies are your friend.