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the-pi-guy said:

The industry as a whole is undergoing some struggles. The growth has stopped.

Exclusivity is being rethought.
Sony is increasingly putting their games on PC. MS has put a number of games on PS and Switch.

The AAA space is being rethought.
Making increasingly expensive games seems to be reaching it's limit. Games can't afford to be GTA VI.
Studios are being closed. Studios are cutting staff. Not every game can afford to have a $200 million budget, let alone $300 million or whatever the future might have looked like if trends continued.


Personally I firmly believe that a lot of these issues are self inflicted. Can't expect growth to continue forever. And I believe that a lot of this expense growth was poorly spent.

The Console space is stagnant, and the PC space is thriving.  A/AA mid-tier games are seeing great sales on PC while those games seem to just barely do anything on current consoles.  The thing is the young people just are not interested in those expensive consoles with their expensive games and they are losing out to mobile.  There is going to be a reshuffle as the older gamers die out and the new gamers dictate what is successful and what is not.  Either you see the shift and make the changes ahead of time or you try to ride the wave and hope its only a short adventure and everything goes back to normal.  I personally believe there is going to be a huge shift in gaming period.  In my mind this move really doesn't mean anything from MS outside of that they know they need to make changes but we have not seen the full picture yet so not sure how things are going to turn out.