There was no good reason to shut down either developer, given how colossal Microsoft's profits are. If MS gave a shit about gaming, they would have funded both for future projects. Arkane could have gone back to immersive sims, and Tango could have gone for HiFi Rush Two, or Evil Within 3, or both could have gone on to new IP.
This 'it's literally just business' isn't a good excuse, because they are not engaging in good business. You invest in your staff to produce products that sell to an audience.
Microsoft are currently engaged in incredibly stupid, bad business.