Microsoft for 8 years now is a company that sells Linux and opensource.
Non of their divisions you mentioned were profitable for many years now(especially Windows), just look at their yearly reports. Only logical to get rid of them. Don't agree with your Azure statement, don't mind me, numbers don't agree with it.
I don't get why you wrote so much about gaming, Microsoft never was a gaming company. And frankly nothing important for gamers was lost with them buying those empty shells of game developer companies, then shutting them down.
I can agree on the AI hype especially with recent github news. But those are recent, we'll have to see if that was bad or good decision.