The point is, Xbox is performing very badly, with the latest metrics suggesting not only that PS5 blew them out of the water, but also that XSeries is selling less than its predecessor. Coupled with rumors about exclusives going multiplatform, people feared that it meant that MS didn’t have enough faith in the brand to keep going, and that Xbox would end like Windows Phone.
The concern was real and, in my opinion, perfectly justified. MS telling them to wait a week for an answer, without dismissing the rumors was the weird part. They saw the community on fire and said, “This is fine”. All-around incompetence.