What they do is up to them but the fact that they won't be honest about it shows that they know it's wrong, from the perspective that it is self-serving and anti-gamer. It's questionable whether they actually are serving themselves though. They may be cutting off their nose to spite their face.
Not the first time.
MLB forced them to do the Show and their explanation was a petulant "It wasn't our idea."
However you count the numbers, XBOX controls about a quarter of the console market and in some genres (WRPGs, single player FPS) over 50%. Their tactics are childish and self-defeating.
Where would Office be if MS didn't suport Macs and mobile, leaving the door open for competitors?
But, hey, as Napoleon(?) said, "Never interrupt an enemy when he's making a mistake." Let them live with the consequences (Helldivers, anyone) of their strategy.