"Become profitable" is just their stated goal.
I think that their actual goal is to look profitable for the upcoming ipo so that the CEOs can cash a fat check and leave. They likely don't care about what happens after that.
So the "become profitable while simultaneously destroying everything that made it valuable" platitude is more like "they're cutting down the tree for the wood without thinking about the squirrels"
This is the natural progression of the games-as-a-service model. Any game that relies on online support of some kind just to function will eventually cease like this.
Is it stupid that a vr game about a pet relies on online support to function? Absolutely. But it is what it is. Buy more offline games.