The stock had been slowly going up the weeks leading up to the announcement, then crashed on the day of the announcement, has been going down ever since and is now trading close to its all time low.
CEO has a track record of making damaging statements.
CEO pushes though decision on a monetisation plan so stupid that people are screaming internally about it before it's released.
The changes in question destroy the brand's reputation and decades of goodwill.
Many customers actively port their games away.
It's characteristic of short term thinking. The only concern is "what might raise revenue this quarter". If they'd thought beyond that they'd have seen that the damage to the brand is likely to be far more costly.
This line of thinking seems to have become pervasive. No thought is given to producing something people want to pay for. Instead, they squeeze until people get fed up and the product dies.
But by your theory this short term decision making would be rewarded by an increase in profits and the share price. It hasn't been. This is just a case of bad management being punished by the stock market as it should be. The system is working here.
Edit: not your theory, but the commenter I was replying to above.