Growth over a long period of time involves two things: consistency in vision, and willingness to take risks.
We do not have a market designed to reward these things, at least not for the likes of Microsoft. For them, it's far easier to simply cut people while collecting on their previous labor. Once the product of that previous labor is no longer as valuable, it can then simply be spun off or shut down permanently.
> consistency in vision, and willingness to take risks.
Agreed. If you are looking at a chart of performance and it's flat or slightly increasing year over year for a few years, you're not doing great. You need to see some dips which means you tried and failed. Without those, you won't ever see the big jumps.
I actually think this is the wrong diagnosis of this situation. The studios in Microsoft gaming appear to have been given a lot of room to take risks under previous leadership, build passion projects, etc. while letting big franchises sit on the side. Those things ended up being anywhere from abject failures to small successes - where some players and critics loved them - but most don't seem to be commercial successes.
In the meantime we haven't seen a new Quake, Fallout, Elder Scrolls, Perfect Dark, Fable, Banjo, Conker, or the myriad of other mainstream IP they owned in decades. Most of these franchises have lost a ton of value after sitting on the shelf for so long without releases.