Aka it's still "on" officially until we break the news to AMD. We're trying not to lose a business partner while we reneg on our contract
If they cancel the whole project, guaranteed there are provisions that pay AMD something big for their work and loss of expected income; AMD isn't designing a chip expected to bring in multi-year revenue for a promise. But for MS with like 12% market share at this point and no real plan to win any back, nor willing to spend money other than GAMEPASS!! trying to do so, whatever the penalties are in the contract are worth it rather than built hardware no one is going to buy. That's why they are raising prices on everything: Each sale is something that is never going to come again. They aren't making any more, they aren't growing, so why not make as much as they can from the people who haven't left yet?
The only people they haven't told are the marks, I mean the customers whose money they still need until they can unwind the business into whatever new model they've decided on.
The only people they have to blame are themselves. They're Woke, they bought ideologically infested Woke studios making woke half-assed California garbage and lazy repetitive derivative junk that people are tired of playing year after year. <shocked face> our business don't grow </shocked face>
[Edit]Meanwhile, erstwhile studios that have in the past made great games are either sidelined, closed down, probably beaten down from within by HR/DEI issues or otherwise given projects or deadlines that can't be met. How many are free to create masterpieces that we all sit around and reminisce about? Is there a single Studio that could make a Mass Effect, DA:O, DE:HR, Destiny, Halo, etc? How about even a Crackdown or a Hi-Fi Rush? Are there writers left inside any of the AAA studios who can unironically write a masculine hetero white hero? It won't matter that anything can be an Xbox if all those studios keep cranking out shit games.[Edit]
How many King Candy Crush whales will it take to make that $70B purchase worth it?