alt Hacker NewsXbox spent $75 billion buying activision-blizzard, an acquisition which is very far away from making its money back, so price hikes were inevitable to cover the massive money hole that left.
Of course this price hike is inevitably dragging Xbox brand into the hole long term, but those in charge of the price hikes probably expect not to be around when that happens,.
I don't think the price hikes have been received terribly well - their Ultimate game pass service is now $30 a month (in the US), which seems to be pricing out a lot of their members. It now makes a lot more sense for many to just buy games outright.