I wonder if all these development troubles among MS studios is because of internal mismanagement, or because MS simply isn’t satisfied with what they’ve produced so far. It wouldn’t surprise me if MS desperately wants their own big blockbuster IPs to compete with Sony, but their studios simply aren’t up for the task (yet).
We shouldn’t forget, Sony’s first party output wasn’t always at the level it is today. During the PS3 era they released a lot of games that were only middling successes, if not outright flops: Killzone, Resistance, Infamous, Starhawk, MAG, Playstation Allstars etc. None of these IPs ever set the world on fire, critically and commercially. Even Uncharted started off really slow; it didn’t even enter the NPD charts during its release month (remember the ‘uncharted’ jokes?)
It took these studios a long time until they found their groove and managed to produce regular blockbusters. Maybe some of MS’s studios are currently at the same stage Sony’s were during the PS3 era, but instead of allowing them to release ‘middling’ games, MS keeps changing things up and rebooting them in the hope of turning these projects into critical and commercial smash hits. I could be totally wrong though; I have no idea how MS works internally. Maybe they don’t care about ‘blockbusters’ anymore because of Gamepass.