Only just seen this;
In that filing, Microsoft refers to the fantasy RPG as a "mid-size game," and therefore justifying its potential isolation from PlayStation or Nintendo consoles.
They’ve not quoted the actual submission, so their interpretation may be wrong. However classifying TES as a mid-size game/series is a bare faced lie.
Legal maneuvering aside, this reminds me of how far removed the people who make and deliver games can be from the people who actually play them. Whether it's classifying the Elder Scrolls as mid-sized or introducing elements into games where they don't fit (but could be profitable or more mainstream), there can be a real disconnect there sometimes.