Xbox is in complete disarray because none of the people in charge seem like people who have played a single video game ever.

And isn't that just so typical? Every industry right now is headed by money extraction experts, not experts in that industry.

I don't think it's played; it's that idiots brought low-margin businesses into a high-margin enterprise b2b saas company (that exploits a monopoly too) and are shocked that gaming is not going to give you 30% or higher margins. Nintendo is super disciplined and a bad year for Microsoft margin-wise is one of Nintendo's best. If Nintendo can't regularly hit 30% margins, nobody can, and certainly (as you say) people who don't game and don't know a single thing about gaming except speedrunning a tutorial aren't going to do that.