Wut...? Vscode is “eating” the cheapest end of the market, where they were present (with the Community editions) but not seriously competing.

They are fine. Their financials are sound and they are plenty profitable. Their real threat is Github and similar services, who try to persuade users that they don’t need an IDE at all. Hence why they’ve come up with a collab alternative that they presented with great fanfare. Imho they should just buy gitlab and integrate with it a bit better.