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Leynos said:

Babylon Fall was on SE. Remember SE has published a lot of stinkers last few years. SE managed a lot of projects badly. Bab was supposed to be a different game and SE asked for it to be Gaas late in development and the publisher rushed it out. The same SE that gave us Forspoken. The Quiet Man. Avengers. Left Alive. The same company that sold off a studio for 300 million for NFTs then the NFT market died and that studio sold the Tomb Raider IP for 600 million. The same SE that made an exclusive FF16 deal with Sony then complained that FF16 was underperforming at launch.

I don't recall Square Enix being disappointed with FF16's performance, but it is fair to hang the failure of Babylon's Fall on them, if they wanted a live service game midway through development.