This sort of makes sense but not for quite the same reasons. This may be an attempt to simplify their licensing arrangements so they can resell them. It’s easier to cancel all the licensing agreements in one go so they can then make a fresh exclusive arrangement with a single company.

It’s less about competing with the existing games (which they already control through licensing) and more to do with being able to sell or use the licensing cleanly without worrying about pre-existinf commitments.

Like, for each new game either you do legal compliance to make sure you’re not breaching your previous agreements OR you cancel all the agreements in one go and you never have to bother worrying about it. Saves money but also makes you the sort of company businesses will be wary doing deals with. But they probably have a deal with a big publisher lined up or intend to take the whole thing in house.