Reminds me of Amazon Games' disastrous MMO launches in Europe because they refused to add more server capacity for European players until they left in droves. For comparison the US servers had more than three times as much capacity at launch.

There is a nearly zero percent chance that the game developers are also cloud experts. Having the same parent company means almost nothing, especially when you get to the size of places like Microsoft. The internal bureaucracy can actually make getting things accomplished properly worse. External contracts are usually pretty clear on what's provided for the payment. Internal processes are often much more blurry, if not completely muddy.

One might argue this kind of thing is inevitable when your solution to everything is "the cloud".