Saying nothing about this person in particular, leadership does not require knowledge of the thing you're overseeing. It doesn't hurt, but it's not like Mr. Gamer himself Phil Spencer didn't oversee the crashing of the entire brand.
A lot can be said about Xbox and the state of the gaming industry writ large, but it's clear to me that Microsoft is done with Xbox as a physical platform. Given the state of the hardware market, there is probably little internal appetite to do something as resource intensive as a full console launch.
types will be so furious about the WAMENS that they won't even consider examining why microsoft is shitting the bed, and instead just blaming woke for it.