Software development is so fucking weird. If one bad (or even just mediocre!) product can ruin an entire company… The problems are way deeper than that one bad product.
Development suffers from a very particular problem. If you’ve ever heard don’t put all your eggs in one basket, then you know the problem. They put all their eggs in one basket expecting this basket to go on and do great things and return on their investment so if or when it doesn’t it really fucks over everyone involved.
They all tried to do live service games and when it all fell apart, the ones who made the decisions cut loose the devs. It is really that simple. Execs were simply too optimistic about their chances of success and when their own decisions threatened their bonuses, they put someone else on the chopping block.