I think he's right on the principle and the issue, but despite not liking it, IMVHO MS isn't the worst one with this attitude, From what we know Activision can be the worst with its devs and EA is trying hard to become the worst with gamers. MS can be ruthless with competitors and trying fishy things with its users too, but, despite a few bastard behaviours and excesses of Ballmer in the past, it's generally a good company to work for to 1st and 2nd party devs. And while in the recent past MS forcing excessive competitiveness almost disrupted team work (and this is probably one of the reasons Lardmer was replaced), generally game devs claim they weren't affected by this involution, instead they were left quite free.
This said, big publishers and devs slowly or quickly destroying great franchises with overmilking, dumbing down, etc, while smaller devs like CD Projekt RED, Mojang and others manage to make great games with far smaller budgets, tell us there is a lot of truth in what Fries says.
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