I'm not sure who "they" is in this scenario. If it's Microsoft Games Studios... well, yeah, they're a publisher. You just described what a publisher is.

I think if we're talking about their recent publishing strategy they've certainly been on a bit of a rut. There's still some interesting stuff happening with their IP. They got Relic to make a surprsiingly faithful Age of Empires, people do like Microsoft Flight Sim, that type of thing. But still, yeah, they've made a lot of purchases and we haven't seen new games coming out from most of those to justify those purchases, which does speak to a bit of a struggle to find a direction. That Hellblade sequel looks intriguing, but for a publisher with a lot of fully owned studios that has been fighting claims of monopolistic practices for their high profile acquisitions their output from that stable hasn't picked up pace yet.

I get it, games take forever to make now. That Hellblade game has been marketed for as long as the Xbox Series has, and that came out in 2020. Still, that itself is a problem. If the big oil tanker is hard to steer you have to plan your turns before you get to the icebergs. I do genuinely hope they get it together, though. That's a lot of talent, IP and potential to let run on idle for too long. Or worse, to fail in the context of a major corporation and stop getting support.