Mr. Zim: I thought it both but after checking this article
https://www.gamespot.com/gallery/all-the-xbox-games-cancelled-and-studios-closed-in-microsofts-latest-mass-layoffs/2900-6726/#10 Literally, Romero Games was working with a major publisher some suspected to be Microsoft who backed out.
Ok so you referred mainly to the recent news of Microsoft laying off lots of people (according to that article 9000 people out of total over 200.000), quite a lot targeted to their console and gaming business I guess.
I have no idea how big "Romero Games" was ie. how many people lost their job with it. Either way, I didn't recognize any of their released or in-development games, and none of them are sold on GOG either, so...
I guess MS is starting to acknowledge that they are losing to Sony and Nintendo in the console business, and maybe overall their gaming division isn't as healthy and lucrative as they hoped. They are making much more money with Azure from big companies etc., better concentrate more there. Naturally keep PC Windows alive as well so that the general public will stay MS-aware and chained to Windows.
I admit I never understood the point of XBox, and why I'd want to buy one. It didn't seem much more than trying to get PC gamers into a controlled console gaming ecosystem controlled by MS. I did buy the first XBox console at some point for Halo 2 (which I ended up playing on PC instead, go figure) and to turn it into some kind of advanced media box with which I can watch DVD-movies and pirated DIVX movies on my TV, but meh, it remained unused all these years and just recently I finally threw it into recycling as I didn't even consider it remarkable piece of gaming history.
XBox always kinda seemed just something aimed for PC gamers who'd felt gaming PCs cost too much. Sony and Nintendo differ more from PC gaming to justify their existence (even if PS3-5 game library overlaps quite much with PC games ie. you can play many Sony console games on PC too, but with XBox it was even more, very little XBox exclusives not available for PC).