Just checked they have 362 people at CD. Iirc the head at The Initiative is the same guy that worked as the head of CD for a decade. So he connections. And after SoTTR failed to reach expectations and Avengers flopped maybe it was a way for them to the majority of keep the teams busy. Like, if we go by head count 150-200 people working on a AAA game sounds about right.
Microsoft essentially pays SE the the project so not risk for them and both parties happy xP Tbh doesn't really have a good look for the The Initiative which MS was hyping to be and all star 'AAAA studio' but hey as long as PD turns out good, I don't think many would care.