This Microsoft response reminds me of the 2018 Blizzcon event, where the Diablo Immortal developer challenged the audience with "Do you guys not have phones?" when the audience asked if the game was coming to PC. Then - like now - it seemed that they couldn't understand that what they made was not what their customers wanted.
And yet Diablo Immortal made about a billion dollars, orders of magnitude more than the other Diablo games combined. Sound like they knew exactly what their customers wanted. https://mobilegamer.biz/three-years-after-a-fiery-launch-dia...
The core kernel of it always seemed, to me, to be an extension of the Diablo 3 RMT auction house idea - they wanted a recurring revenue source from a franchise where traditionally they were not charging one, and in this case, they squared that circle by appealing to users who were not existing players, and so did not have those norms in mind.