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Xbox is in Trouble: Asha Sharma's "Reset" Memo Explained - Unlocked Clips

Transcribed Jun 18, 2026 Watch on YouTube ↗
Intermediate 6 min read For: Gaming enthusiasts, industry analysts, and tech professionals interested in video game business models and subscription services.
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AI Summary

The video discusses whether Xbox Game Pass, nine years into its operation, is proving to be a mistake or unsustainable in its current form. The panel analyzes how Microsoft's heavy reliance on subscriber numbers, combined with day-one AAA releases, creates financial volatility and conflicts with the goal of reviving exclusives. They also cover recent reports of potential studio closures and a strategic 'reset' at Xbox under Asha Sharma.

[0:17]
Game Pass as a long-term experiment

Game Pass is 9 years old and was intended as an experiment to become the 'Netflix of video games' requiring significant investment.

[3:00]
Financial reliance on subscribers

Xbox is heavily dependent on subscriber numbers, making it vulnerable to price hikes and cancellations.

[2:00]
Consumer perspective vs. business reality

Consumers like Game Pass for its convenience and exposure to new games, but it creates challenges for game sales and platform exclusivity.

[11:55]
Xbox Live Arcade as an alternative model

The traditional Xbox Live Arcade model had mandatory free demos and curated selection, offering a different approach to game discovery.

[13:40]
Tension between exclusives and Game Pass

The panel questions whether the 'day one' AAA model for Game Pass can coexist with the goal of bringing back exclusive games, given low hardware sales.

[20:49]
Potential studio closures

Reports suggest studios like Compulsion Games, Ninja Theory, and Double Fine may be shut down or spun off due to financial pressures.

Clickbait Check

82% Legit

"The title accurately reflects the discussion about Xbox's struggles and the strategic reset, delivering on its promise of explanation."

Mentioned in this Video

Study Flashcards (7)

How long has Xbox Game Pass been running as an experiment?

easy Click to reveal answer

9 years.

0:17

What did Microsoft aim for Game Pass to become?

easy Click to reveal answer

The 'Netflix of video games'.

0:36

What is the primary financial metric Microsoft focuses on for Game Pass, according to the discussion?

medium Click to reveal answer

Subscriber numbers, not game sales.

3:00

Why might players subscribe for only a month to play a major Game Pass release like Call of Duty, instead of buying it?

medium Click to reveal answer

Because it is way cheaper for them than buying the full game, and they can cancel after one month.

3:48

What is Xbox Live Arcade, and how did it contrast with Game Pass?

hard Click to reveal answer

A previous program that required every game to have a free playable demo at launch, offering curated discovery.

11:55

What is the core tension described between Game Pass and console exclusives?

hard Click to reveal answer

He says he isn't sure because day-one AAA games on the service may not recoup their massive development costs given low unit sales.

13:40

What is the reported fate of studios like Compulsion Games, Ninja Theory, and Double Fine?

medium Click to reveal answer

They might be shut down or forced to go independent.

20:49

💡 Key Takeaways

⚖️

Netflix of Gaming Ambition

Establishes the original bold vision for Game Pass, which underpins the entire discussion of its success or failure.

0:36
💡

Subscriber Dependency Risk

Reveals the vulnerability of a subscription business model — a single misstep can cause mass cancellations.

3:00
📊

Market Adaptation Pressure

Highlights how external forces (AI crisis, COVID, Roblox, TikTok) have reshaped gaming and complicated Microsoft's strategy.

10:13
🔧

Xbox Live Arcade Curatorial Model

Presents a concrete alternative structure (demos, curation) that could be revived alongside Game Pass.

11:55
💡

Game Pass vs. Exclusives Incompatibility

Articulates the central economic contradiction the panel identifies — that day-one subscriptions undermine exclusive game sales and hardware demand.

13:40

✂️ Creator Tools: Viral Hooks

AI-generated clip ideas for Shorts based on the transcript

9 Years of Game Pass: Was It a Mistake?

52s

This controversial question sparks debate among gamers about the long-term viability of Xbox's subscription model.

▶ Play Clip

Xbox's Game Pass Problem: All Eggs in One Basket?

40s

Explains why Xbox is moving away from exclusives to supplement Game Pass, a hot topic in gaming news.

▶ Play Clip

Is Game Pass Killing Xbox Exclusives?

60s

Questions the economic compatibility of Game Pass with exclusive AAA games, a divisive issue among fans.

▶ Play Clip

Xbox Studio Shutdowns Are Coming

60s

Reveals shocking reports of potential closures of beloved studios like Compulsion, Ninja Theory, and Double Fine.

▶ Play Clip

[00:00] But I think what it is time to bring up,

[00:04] I mean, in fairness, the community's

[00:06] been talking about this for a while, and

[00:08] some people have really strong feelings

[00:10] about it one way or the other.

[00:13] >> We are now 9 years officially into the

[00:17] Game Pass experiment.

[00:19] >> And I think it is fair. I'm not I don't

[00:21] say that in like a derogatory way

[00:23] experiment like it

[00:25] >> it had never been done before like a

[00:27] especially a major first party trying to

[00:29] create by their own words I don't know

[00:31] if they ever literally said this but we

[00:33] all understand Game Pass to be an

[00:35] attempt

[00:36] >> to be the the Netflix of video games

[00:40] >> and it was going to take a lot of money

[00:42] to to pull off and so you know

[00:44] Microsoft's got plenty of that in their

[00:45] war chest. So, we're 9 years into the

[00:47] Game Pass experiment. And so the

[00:50] question that I want to ask each of you

[00:52] is,

[00:54] is Game Pass in the grand scheme of

[00:57] things for Xbox, I'm not saying for the

[00:59] industry, for Xbox as a business, cuz

[01:02] that's what all this is about this week,

[01:05] >> is Game Pass proving to be a mistake, or

[01:09] if we don't want to quite go that severe

[01:12] necessarily,

[01:15] is it is it sustainable in its current

[01:18] form? term whereby day one releases go

[01:23] into the service like it people are not

[01:25] buying games on Xbox we know this they

[01:28] don't even they won't even give out

[01:30] numbers anymore some third parties are

[01:32] even not releasing or very skeptically

[01:36] releasing games and they're not selling

[01:38] games on Xbox so Miranda you first here

[01:43] where do you how much of Xbox's current

[01:48] self-imposed predicament

[01:51] is a result of the Game Pass experiment

[01:54] not going as well as they'd hoped.

[01:56] >> First thing I'm going to say, I still

[01:58] like Game Pass. I think it's very

[02:00] >> from a consumer perspective. Yeah,

[02:02] perspective, don't get me wrong. So,

[02:04] yeah, go ahead. Yeah, it's like the

[02:05] consumer perspective is like game pass

[02:08] rules. Like it is so convenient for

[02:10] finding so many different games, trying

[02:12] smaller ones, cliff, as you're saying,

[02:14] like it's the indies that hold or like

[02:16] smaller experiences that hold a lot of

[02:17] this together in the meantime between

[02:19] development cycles. Uh, and I think Game

[02:22] Pass really lends itself to exposing

[02:24] yourself to new kinds of games, new

[02:26] developers without having to invest

[02:28] much. That being said, I do

[02:32] think

[02:34] Microsoft has put itself in a strange

[02:36] place with how it expects success. And I

[02:40] know they do have some metrics on like

[02:42] how much people play with Game Pass as

[02:45] far as like how much time have they

[02:46] spent within the game, like did they

[02:48] finish this game? Like there are ways to

[02:50] track that.

[02:52] And I think that is informing some of

[02:55] the changes they're looking at now. But

[02:58] I do think at the end of the day because

[03:00] they are so married to the subscriber

[03:03] bottom line as I was saying earlier when

[03:05] they make a massive mistake like raising

[03:07] the price too much to the point where

[03:08] everybody just cancels because it is too

[03:10] much especially if you have the higher

[03:11] tier people who are paying more per

[03:13] month cancelling in mass um you're kind

[03:16] of risking something fundamentally

[03:19] challenging like if you put all your

[03:21] eggs in one basket

[03:23] what are you doing and so I think that's

[03:25] maybe also why we started seeing the

[03:27] move away exclusives, right? So, it's

[03:29] like, okay, if we can sell these games

[03:31] on other platforms, that helps

[03:33] supplement Game Pass in some way if

[03:35] we're losing subscribers. So, going back

[03:38] to being exclusive, still having

[03:40] everything in there, except for Call of

[03:41] Duty because of course that that is

[03:43] another big thing that people buy.

[03:45] That's like one of the things that

[03:46] people buy every year and instead of

[03:48] just subscribing for a month, which is

[03:49] way cheaper than just buying the game,

[03:51] you know, you get the game plus

[03:52] everything else. So, I think they've put

[03:55] themselves in a strange place for

[03:58] financial success, especially when we

[03:59] know like the system in in the race

[04:02] against the other consoles, if you want

[04:04] to frame it that way, is just not

[04:05] selling the same way. Like the Xbox is

[04:08] just not selling like the PlayStation or

[04:10] now the Switch 2, but I think Switch 2

[04:12] is like in a different place, but that's

[04:13] new, right? Um, I think that comparison,

[04:17] which we know that's not necessarily

[04:19] what drives her sales, but I think is

[04:23] part of this puzzle piece as well or as

[04:25] a piece of this puzzle as well. Um, and

[04:29] it's that that hard line of well, I want

[04:34] these studios and Xbox to continue, but

[04:36] I also selfishly want game pass to

[04:38] continue as it is because it is so

[04:40] helpful for being able to play these

[04:42] games. I I think I've said it before too

[04:44] like if I had Game Pass as a kid in like

[04:47] insanity like incredible incredible

[04:49] exposure to all these games and that is

[04:52] something that I think Phil really built

[04:53] on and like really

[04:56] nailed with his team was that they

[04:57] wanted games to be something that people

[04:59] can get into as a hobby when it is

[05:01] getting more and more prohibitively

[05:02] expensive. I think, you know, of my

[05:04] childhood of how many games I had access

[05:07] to simply because of money, like how

[05:08] much pocket change I had to save just to

[05:11] get one game and how long that took and

[05:13] how picky you had to be. And the

[05:15] ecosystem of games access is changing so

[05:19] much as far as like freeto play and

[05:22] other experience-based games that Game

[05:25] Pass still likens to that free feeling

[05:28] in a way. That being said, they still

[05:31] make money. So like what you know I I

[05:34] think it is a challenge for them to

[05:36] solve and I don't know what the solution

[05:38] is like that that comes into a financial

[05:41] point where I'm like that is beyond me.

[05:43] I'm a writer, but um I like I can

[05:47] critically analyze that obviously this

[05:48] is a problem and but

[05:51] because of how volatile like a

[05:54] subscriber based

[05:57] organization like if you're running this

[05:59] massive massive division on subscribers

[06:02] that is like a really hard place to be

[06:04] if you falter. So yeah.

[06:07] >> Yeah. I think the the thing that I go

[06:10] back to is a couple of different things.

[06:12] So, like last night I downloaded Beat

[06:14] Down Survivors. Uh, shout out to my

[06:16] friend New Challenger out in the world.

[06:18] Um, and knew of that game was like, "Oh,

[06:22] I forgot it's on Game Pass. Let me go

[06:23] play it and and check it out and go and

[06:25] I had a blast with it." And then I wind

[06:26] up buying it, right? I use Game Pass as

[06:28] a try it before you buy it space, right?

[06:30] >> Alongside the day one layer of it that I

[06:32] think is really important, right? So I

[06:35] am a person who am looking at the

[06:37] service as a person who is thinking

[06:39] about you know even thinking about the

[06:42] kind of good stewardship part that you

[06:44] talked about a little bit earlier in in

[06:45] the show uh Miranda around like I know

[06:48] that there are there are games that

[06:50] wouldn't have actually been out in the

[06:52] world without Game Pass right

[06:53] >> they have been subsidized by the upfront

[06:56] money that you wind up getting and they

[06:57] wind up bridging the gap between getting

[06:59] your thing made or not getting your

[07:01] thing made right some of those people

[07:04] may not have ever gotten a a a the

[07:07] amount of sales that would have been

[07:09] able to recoup whatever that development

[07:11] cost was for them, right? Then you have

[07:13] the Call of Duties who, you know, are

[07:15] going to sell no matter what you do. And

[07:17] I'm sure that when you think back about

[07:19] like how much money they potentially

[07:21] didn't make by putting it in Game Pass,

[07:23] that might have not been the right

[07:24] direction for where that game winds up

[07:26] landing in that space. I always think of

[07:28] this thing as like one of the things

[07:31] that is missing in this era of gaming.

[07:33] At least this last genre, not genre,

[07:35] this last era of gaming, whatever this

[07:37] last um

[07:38] >> generation

[07:39] >> generation. Thank you. That's the word I

[07:40] was looking for. Was that we don't have

[07:42] a lot of portfolio curation anymore. And

[07:45] I think what game what game pass does is

[07:48] open up a space where you are able to

[07:50] see and play a variety of things that

[07:52] you might not have ever touched before.

[07:54] And it might again do that thing of

[07:56] being like, "Oh, I want to support these

[07:58] folks because they made something dope

[07:59] and I think this is really interesting."

[08:01] Does it wind up hurting the entire

[08:03] industry where we see now some of those

[08:06] folks who are in that mix be hurt in a

[08:09] in a way that they didn't necessarily

[08:10] foresee? Absolutely. But I think we have

[08:14] now, like you said, have nine years in.

[08:17] I think there's a space where if you are

[08:19] now looking at that conversation and you

[08:21] go to Xbox and say, "Hey, I want my game

[08:23] on your platform, you have enough people

[08:26] that you can talk to in the development

[08:28] uh uh, you know, community to be like,

[08:31] is this you've been a you've made a game

[08:33] that's similar to scope that that my

[08:34] game is in. How did you see that kind of

[08:36] work out for you?" And you can make a

[08:38] good decision there to be able to say,

[08:40] "Well, maybe this isn't for me and maybe

[08:42] I need to do the traditional route and

[08:44] go put it on, you know, multiple

[08:45] platforms, put it on Steam, put it in

[08:47] all these other places where you think

[08:48] might give you the most benefit for your

[08:51] potential growth on this kind of game."

[08:53] I think there's a lot of space that we

[08:55] don't know. And again, I I I will also

[08:57] raise my hand and be like, I don't know

[08:58] anything about how that thing works in

[09:00] the back end. You know, I don't know

[09:01] what it I haven't made a bisdev deal

[09:03] yet. You know what I mean? I haven't

[09:04] done that yet.

[09:05] >> So, I you know, I don't know. But I do

[09:07] think that like there are always going

[09:09] to be benefits. I think the thing that

[09:11] comes back to all of these conversations

[09:13] is that we're still talking about risk,

[09:16] right?

[09:16] >> Yeah.

[09:16] >> And we're still talking about making a

[09:18] bet. Phil Spencer made bets, Xbox made

[09:22] bets with Don Matrick made bets. Like

[09:24] everyone is making bets. The thing that

[09:26] we don't know is how many of those

[09:28] things are going to pay off, how many

[09:29] things are going to tank and then how

[09:31] many of those things are going to have

[09:32] to be readjusted for again a a moving

[09:34] target that is consistently changing

[09:37] that consistently changes based on the

[09:39] market. No one knew that we were going

[09:40] to be in a silicon and AI crisis now

[09:43] with with hardware. No one knew that we

[09:45] were going to have the COVID part of it

[09:46] that I talked about earlier. No one knew

[09:48] that Roblox and and Fortnite were going

[09:50] to become the biggest things on the

[09:52] planet and suck up so much of your time

[09:54] alongside social media and Tik Tok and

[09:55] all those other layers of stuff. No one

[09:57] knew that stuff. You know what I mean?

[09:59] So, we're all trying to get in where we

[10:01] fit in while also trying to figure out

[10:03] where things are going to be and

[10:04] forecasting as far as you can. But it's

[10:07] all a moving target and those things are

[10:09] going to the thing that is the most

[10:10] important is how do these companies

[10:12] adjust quickly,

[10:13] >> right? Can you make like they they made

[10:15] that change really fast when they saw,

[10:16] oh, we we're hemorrhaging a lot of

[10:18] subscribers here. We need to readjust

[10:20] that and figure out what that looks

[10:21] like. Now, in in in Asha's uh kind of

[10:24] new space, she's going to have to

[10:26] consistently think about how fast and

[10:28] nimble they can move to adjust to all of

[10:30] these market changes that are happening

[10:32] that are self-imposed, historical from

[10:34] the brand and going to be coming in from

[10:36] all the things that we're now seeing

[10:38] alongside tariffs, alongside weird

[10:40] things that are happening across the the

[10:42] geopolitical spectrum. All those things

[10:44] are going to be tied to the way that

[10:45] business works in the video game space

[10:48] moving forward. And you can't deny that.

[10:49] So that's going to be the space where we

[10:51] wind up seeing the most change. And I

[10:53] think now that they're being more

[10:55] transparent with some of these things

[10:57] and ripping the band-aid off, it doesn't

[10:59] help the developers who are going to be

[11:00] hurt, but it also gives people the space

[11:02] to understand what is actually kind of

[11:03] happening when these discussions wind up

[11:05] popping up.

[11:06] >> You I'm glad you mentioned curation

[11:08] because uh first and first of all, there

[11:11] are definitely there are absolutely

[11:13] there are plenty of game pass success

[11:15] stories. M I've talked to plenty of

[11:16] developers that plenty of them have put

[11:18] out press releases where like they've

[11:20] been huge on Game Pass, bigger than they

[11:23] would have been, you know, without

[11:24] without that sort of spotlight on them.

[11:27] So, I don't want to I don't want to sit

[11:29] here and make it seem like I'm saying

[11:31] that Game Pass is this like complete

[11:32] total failure.

[11:34] >> Game Pass is the devil. No, I'm just

[11:35] playing

[11:35] >> in any in any sense. But when you I'm so

[11:39] glad you brought up curation because

[11:42] th I will if you're playing the unlock

[11:44] drinking game at home, buckle up. Uh

[11:48] this is again like they had a thing that

[11:52] they could still bring back

[11:55] >> called Xbox Live Arcade.

[11:58] >> Oh man.

[11:59] >> To your to your point K when you said

[12:01] that you use Game Pass to try stuff out.

[12:05] >> Yeah. live arcade games. Part of the

[12:08] mandate of the program was that every

[12:10] live arcade game had a free playable

[12:14] demo right right at launch. Like it was

[12:16] part of your certification and

[12:18] submission process

[12:20] >> as part of getting your game out on the

[12:22] Xbox Live Arcade platform.

[12:24] There is the indie select thing now that

[12:26] I get press releases from the PR team

[12:29] every now and again about,

[12:31] >> but I'm telling you, it's just I think

[12:33] Live Arcade

[12:35] could still be useful in 2026 and beyond

[12:39] given prominent placement. Give it its

[12:41] own tab on the dashboard like Game Pass

[12:45] has its own tab and you curate that with

[12:49] editorially minded voices within

[12:52] Microsoft, you know, as it was back in

[12:55] the day where when you know you are

[12:57] getting a cool selection of like four or

[13:00] five games in a given week of like hey

[13:03] here's our it's it's live arcade

[13:05] Wednesday here's here's what's out you

[13:07] know here's what we've got for you this

[13:08] week so I just wanted to throw that out

[13:10] there um but yeah like I I put this out

[13:15] on my social on Twitter the other day

[13:19] and I I gotta say I got a ton of really

[13:21] great thoughtprovoking Excellent

[13:24] responses

[13:26] cuz and the thought was is

[13:30] and I I've started to bring this up

[13:32] earlier and it's is Game Pass. Miranda,

[13:36] you you started to go down this road as

[13:37] well. I don't know if Game Pass in its

[13:40] current form

[13:42] is compatible

[13:44] with

[13:46] the idea of exclusives coming back to

[13:48] Xbox. And again, I'm not for anybody

[13:51] listening, I'm not trying to say that I

[13:53] don't want exclusives back on Xbox. Uh

[13:56] cuz it would be cool to have some

[13:57] special stuff for the platform again.

[13:59] But I just don't know if wi with all of

[14:02] these margin challenges that Xbox is

[14:05] having, their inability to sell games,

[14:07] their inability to sell hardware,

[14:11] can you have day one AAA games on your

[14:16] your streaming service, your

[14:17] subscription service, while also having

[14:20] exclusives because I'm just not sure

[14:23] that you can make up you can make the

[14:25] month the revenue on that work. Like I

[14:27] will say for as a pretty uninformed

[14:32] perspective cuz I don't you know I don't

[14:34] know I don't know exactly how much Gears

[14:36] of War Eday costs to make. I know it's

[14:39] pretty damn expensive cuz they've been

[14:40] working on it for a long time. It's a

[14:43] AAA production, but I I do have concern

[14:47] about

[14:49] the future viability of Gears

[14:52] if the like what's the I guess what's

[14:55] the metric of success for Gears of War

[14:57] Eday when it clearly costs it's going to

[15:00] end up costing them a lot of money to

[15:01] have made by the time this thing comes

[15:03] out, especially when you factor in

[15:05] marketing and all that stuff when the

[15:07] only place to play it is on the distant

[15:11] third place console. console platform

[15:14] and on the thankfully growing PC

[15:17] platform

[15:18] >> like so that's

[15:20] and you've got Game Pass. Like are are

[15:22] people going to sign up for to for Game

[15:25] Pass to play Gears of War eay? They

[15:28] might. But are they going to stick

[15:29] around for

[15:32] three, four, five months or at least at

[15:34] least the equivalent price of what it

[15:36] would be to purchase the game? Maybe

[15:38] not. they might just subscribe for a

[15:40] month, maybe two, and then be like, "All

[15:43] right, I played my gears, and there's

[15:45] nothing else here that I super care

[15:46] about right now. I'm out." So, that's

[15:49] that's where I'm I don't know the

[15:52] answer, but I like we do know Asha said

[15:54] in the very beginning when she first

[15:56] started that Game Pass would continue to

[16:00] evolve and continue to change. And I

[16:03] think they're probably trying to figure

[16:04] that out right now because I just don't

[16:07] see how economically, again, I'm on the

[16:10] outside. I don't know their their

[16:12] numbers, but it to my layman brain and

[16:15] eyes, I just don't see a way for Xbox

[16:20] console exclusives

[16:22] to coexist with Game Pass having Day One

[16:26] AAA new first party releases and for

[16:28] that to be any more economically viable

[16:31] than the than the mess that they

[16:33] currently find themselves in. M

[16:36] >> it feels like they have to reckon with

[16:38] these two paths that they have that like

[16:40] they've went one way, right? With Game

[16:42] Pass multiplatform kind of becoming more

[16:45] of a

[16:48] place to publish games rather than like

[16:51] an exclusive console ecos system and

[16:54] like we have this as an option if you

[16:56] want it. And that's kind of the

[16:57] direction they were moving in and now

[16:58] they're like wait this isn't popular

[17:00] enough like we're losing like fan base

[17:02] in some way. like let's completely

[17:04] change direction which is what Asha is

[17:05] doing but then that kind of is at odds

[17:08] with what they were building for the

[17:09] past few years right and so it's like

[17:12] but how do you like reckon those two

[17:14] ideas and I think the unfortunate thing

[17:17] I think will lead us into our next topic

[17:18] a bit too is shutdowns that is the that

[17:21] that is the reckoning is the reckoning

[17:23] is well this is it working out in the

[17:26] way we wanted financially or how we can

[17:30] like like realistically manage what we

[17:32] want to do. So, we're going to go

[17:34] instead be back in competitive space

[17:36] with console, like the console market,

[17:38] like we do actually want that and PC

[17:41] specifically, and uh refocus how we're

[17:43] doing things instead of being a bigger,

[17:45] wider kind of almost like publisher

[17:49] aligned thing with with with options for

[17:52] hardware and accessories. Mhm.

[17:55] >> Yeah. I think uh for me I think about my

[17:58] usage of game pass in this way and I

[18:00] think if you take day one out that

[18:03] becomes a much less exciting prospect

[18:06] for me.

[18:07] >> Day one is the reason why I have game

[18:09] pass currently as at this point. It's

[18:11] the reason I want it. Um I think the

[18:14] potential fix for them could be and this

[18:17] is probably not right because I think

[18:19] about you know the price of a game is 70

[18:22] bucks. We know that AAA games and and

[18:24] kind of your marquee games are going to

[18:25] be in that space. You know, I think

[18:27] about how much money I've spent on Game

[18:29] Pass leading up to when a release is

[18:31] happening. And I've already paid for G

[18:33] for Gears of Before Eay. If you think

[18:35] about what I've paid over the monthly

[18:37] time that a game subscription is gone,

[18:39] I've paid for eBay already in that way.

[18:41] But I do think the people who are coming

[18:43] in and saying, "I'm going to do this for

[18:45] a shorter amount of time or I'm going to

[18:47] buy that subscription, play through it

[18:49] really fast, and then and then do that

[18:51] thing." That is a worry for a lot of

[18:53] folks in that space. I think that

[18:54] definitely is a a part of that

[18:56] conversation in a way that that doesn't

[18:58] necessarily help the bottom line for

[19:01] what you want it to be. And that's the

[19:02] conundrum that they're always going to

[19:04] wind up being in unless they either

[19:06] remove day one stuff and give you

[19:08] either, you know, if you are subscribed

[19:10] to that thing and you're not uh not

[19:13] having those day one experiences. Maybe

[19:15] potentially because you're a subscriber,

[19:17] you offer them a discount

[19:19] >> and say, "Hey, you don't have to spend

[19:21] 70 bucks on this game because you're a

[19:22] subscriber." Maybe we charge you,

[19:25] >> right? We charge you 50 for it as

[19:26] opposed to the full 70, right? like

[19:28] maybe there's a balance there where you

[19:31] can kind of figure out some good

[19:32] language there which then also again

[19:34] keeps your your players a little bit

[19:37] happier. You then don't have to think

[19:39] about potentially what the the oh this

[19:41] game is going to go to uh you know Sony

[19:43] in this way even though it probably

[19:45] should because you still need the money.

[19:47] Um so it's it's really about just like

[19:49] how do you balance out the value versus

[19:51] what perceived value actual value and

[19:53] what do you think is going to be there

[19:55] for you when you subscribe to the thing.

[19:57] Um, but who knows? Like again, I don't

[19:59] know where they're going to go from a

[20:01] pricing perspective or a space that's

[20:02] going to keep people happy when all of

[20:05] this bad uh, you know, these bad vibes

[20:07] keep coming out, right? It's hard to

[20:09] sell the thing that you want people to

[20:10] to enjoy and be excited about while also

[20:12] saying, "Hey, the person who just made

[20:14] that thing is not even going to be here

[20:15] next year or in the next four months."

[20:17] Right? That makes that much harder to be

[20:18] able to say out loud.

[20:21] So, as Miranda alluded, um yeah, all all

[20:24] of these all of this grim financial

[20:27] outlook and a resetting of the business,

[20:30] which is code for layoffs, uh that

[20:33] appears to be happening. None of this is

[20:36] official yet as of this recording. That

[20:39] could change by the time you hear this,

[20:42] but uh what we are staring down right

[20:44] now are reports of

[20:49] Compulsion Games getting shut down,

[20:53] Ninja Theory

[20:55] getting shut down, and potentially

[20:59] Double Fine getting shut down. Um there

[21:03] could be more, there could be others. Uh

[21:07] these studios, I guess. Let me just let

[21:09] me go through go through the news as it

[21:12] was here. Um, so Compulsion is seemingly

[21:15] the closest one to to actually confirmed

[21:19] if it again maybe it is by the time you

[21:21] hear this, but

[21:23] uh they were founded in '09 by a former

[21:25] Arcane developer named Gon Provost, who

[21:28] I've met, super nice guy. Uh, they made

[21:31] contrast in 2013, which was really good.

[21:35] We Happy Few, which a lot of people

[21:38] liked a lot. I thought it was

[21:39] >> it was an awesome it had so much

[21:41] potential. It didn't quite get there for

[21:43] me, but uh there was a lot of a lot in

[21:45] there. That was 2018.

[21:47] >> Gearbox published that back when Gearbox

[21:49] was

[21:50] >> sort of doing their little

[21:51] experimentation as a publisher.

[21:53] >> Then Microsoft bought them. Uh and when

[21:55] we finally got South of Midnight last

[21:58] year, which got excellent reviews, and I

[22:01] played a bit of it, that excellent game.

[22:03] had had a great time with it.

[22:05] >> Award-winning.

[22:06] >> Yes, multiple awards. Absolutely. It won

[22:09] some awards. So, uh this is Kotaku is

[22:12] reporting that the compulsion layoffs

[22:14] may total more than 90 staff. Uh just

[22:18] months after the studio advertised jobs

[22:20] for a new IP. Now, Kotaku said one

[22:24] source indicated Compulsion leadership

[22:26] is in negotiations with Microsoft over

[22:29] the studio's fate.

[22:32] And uh that's kind of the same situation

[22:35] with Ninja Theory and Double Fine who

[22:38] are reportedly

[22:41] negotiating with Microsoft to

[22:43] potentially go independent. Now that has

[22:46] there are all sorts of like big money

[22:49] questions that have to get answered is

[22:51] you know. Thanks for checking out this

[22:52] clip from Unlocked IGN's weekly Xbox

[22:55] show. If you enjoyed it, don't forget to

[22:57] watch the full episode at

[22:58] youtube.com/ignames.

[23:01] New episodes of Unlock drop every

[23:03] Thursday on IGN Games, IGN.com, and your

[23:07] favorite podcast platforms. Thanks for

[23:09] watching, and we'll see you next time.

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