Thanks toEthan Gachfor spotting.
We should start with the question of why game publishers exist in the first place.
If you were a studio, you needed a AAA publisher to reach a customer at an Egghead software.
Egghead Software was a brick-and-mortar retailer that went bankrupt in 2001.]
AAA publishers were slow to react to this disruption.
Over the past 5-7 years, the AAA publishers have tried to use production scale as their new moat.
With Xbox Game Pass we’ve created a new platform for AAA publishers to attempt to navigate.
We launched our new subscription platform from the existing gear platform.
Circling back to [Take-Two Interactive] on Friday.
They are interested in bringing their second biggest franchise, Red Dead Redemption, to XGP as well.
For publishers with 2-3 scale franchises that’s a difficult transition.
They are living the disruption to their model and we are hoping this will come through.
They are a good partner but also leery of these changes.
Firstly,Microsoft are still very keen on buying Nintendo (and Valve).
Thirdly,Microsoft may launch a “hybrid” cloud and AI-based gaming platform in 2028.
And fourthly, there comes off as anew Xbox controller in the works.
Do you have any thoughts on Spencer’s thoughts?
