Microsoft is killing Xbox..

Asmongold TV| 00:33:01|Jun 16, 2026
Chapters8
discusses the memo pushing a 100 day reset and the looming layoffs and potential studio changes.

Asmongold breaks down the blunt truths behind Xbox’s current trajectory, warning that layoffs, cost cutting, and strategic missteps threaten the platform’s future unless a bold realignment happens.

Summary

Asmongold analyzes a troubling Microsoft/Xbox narrative, focusing on a memo from CEO Asha Chararma and Chief Content Officer Matt Booty that signals a hard reset for the next 100 days. He argues that the “gutting” of Xbox isn’t surprising given years of ambitious investment with slim profits, citing a 3% accountability margin and ongoing costs that dwarf revenue gains. The streamer dives into hardware headwinds—rising storage and memory costs—and questions how a company with a 3% margin can sustain console production and a broad studio slate. He highlights Chararma’s emphasis on a self-reliant hardware strategy and potential mergers or acquisitions to bolster Xbox across hardware, PC, mobile, and streaming. Throughout, Asmongold contrasts the charm offensive from leadership with the harsh financial realities, noting that first-party studios like Halo and Gears are pivotal to Xbox’s identity and sales. He also contends that Xbox’s strategy is being shaped by Microsoft’s broader AI and cloud priorities, potentially at the expense of beloved exclusives. The video connects past missteps (the Xbox One era, exclusivity shifts) to today’s challenges, arguing that a coherent product strategy—rather than a rebranding campaign—will determine Xbox’s fate. Finally, he speculates that cloud gaming and new business models may redefine console ownership, suggesting a longer horizon where Xbox must either reform or shrink its footprint further.

Key Takeaways

  • Xbox’s profitability is structurally weak, with a reported 3% accountability margin despite more than $20 billion invested over five years (excluding Activision Blizzard King).
  • Hardware costs are rising sharply—storage components are up and prices are expected to be five times higher by holiday 2027 versus 2025—pressuring console production.
  • Chararma and Booty’s memo signals a 100-day “reset,” with talk of layoffs and budget cuts to marketing and other areas, hinting at a broader retrenchment strategy.
  • Game Pass faced a decline and then a rebound as Microsoft pushed margins, illustrating the tension between service pricing and accessibility in sustaining growth.
  • A broader Microsoft strategy may prioritize AI/data-center investments and cloud gaming, potentially reshaping Xbox to function as a loss leader within a larger ecosystem.
  • Two enduring franchises (Halo and Gears) are viewed as essential to Xbox’s hardware sales; if they falter, Xbox’s console business falters too.
  • The critique argues leadership and studio accountability—rather than individual studios—drive results, implicating management decisions in recent performance.

Who Is This For?

Essential viewing for Xbox and game-industry followers who want a sharp, insider-style take on leadership decisions, strategic shifts, and the impact on exclusives, layoffs, and future hardware direction.

Notable Quotes

"They're absolutely gutting Xbox. I'm not surprised. Not surprised at all."
Opening assertion setting the tone for the discussion about missteps and upcoming cuts.
"We won't succeed by hiding hard truths, nor will we succeed by doing the same thing and expecting different results."
Chararma/Booty framing that hard truths require a reset and a shift in strategy.
"Fire 343 and Halo Studios and get somebody that knows how to make video games do Halo."
Extremely pointed critique of current first-party development and a call for leadership that can deliver flagship franchises.
"Xbox have become too reliant on vendors to operate our systems and must become more self-reliant."
Critique of outsourcing and a push toward more internal control over key platforms.
"There are no organizational changes underway for our studios. But didn't they just close the studio last week?"
Quoting Booty’s memo to highlight the disconnect between stated plans and real-world studio outcomes.

Questions This Video Answers

  • Why is Xbox reportedly cutting jobs and budgets in 2025-2026?
  • What does Asha Chararma mean by a 100-day reset for Xbox?
  • Will Xbox push toward cloud gaming change console ownership or pricing?
  • How does Game Pass performance affect Xbox’s strategic direction?
  • What happened with Halo and Halo Infinite under Xbox leadership, and what’s next for Halo as a franchise?
Asmongold TVXboxMicrosoftAsha ChararmaMatt BootyHaloGearsForzaGame PassActivision Blizzard King acquisition rumors
Full Transcript
They're absolutely gutting Xbox. I'm not surprised. Not surprised at all. Let's see it. In part one of this miniseries, we covered Asha Charm offensive. It's been a successful one. But now we cover the reason why she built up all that PR. And it begins with a quote. We won't succeed by hiding hard truths, nor will we succeed by doing the same thing and expecting different results. So, if you think that this is Xbox going back to the good old days, no, it absolutely isn't because those days are quite literally gone. But where it all really led up to was on Wednesday when Xbox published a memo to staff. In the memo, we learned the next 100 days would need to be a, and I quote, reset. That staff needed to hear hard truths that were holding them back. That very same day, the press reported plans for an unknown number of layoffs and maybe even a studio closure. Xbox have spent the last 100 days trying to show you how they've changed. But now for the next 100 days, they're already back to planning their fourth year of layoffs. Bloomberg, the fourth year. No, that's not true. The fourth year of layoffs so far. There will be a fifth year of layoffs and there will be a sixth year of layoffs. sites insight. The layoffs will continue until morale improves this one. And the cuts are also planned to quote significantly slash budgets for marketing and some other areas of the business. But of course, we knew that this was coming. For the last few weeks, executives at Xbox have been paring the not in a healthy spot line. And the Ver sources actually suggest more. Cuts could even involve a studio closure or changes to the Xbox studio lineup. Now, that resurfaced to claim from the giant bombcast that up to a thousand staff could be impacted by this. None of this is surprising to me. But what may be a bit of a surprise is that before the layoffs have even happened, Xbox are already trying to justify them. And that is very different to the way they have oper. You want to fire a bunch of [ __ ] people, just put them out on their ass. Like, I don't want to [ __ ] hear about this. Bring me another Gears of War trailer. I don't give a [ __ ] how you run your company. Suck my dick. [ __ ] Shut the [ __ ] up. Don't tell me about why you're going to fire some I don't care why you fire some random developer. Like just make the [ __ ] game. Like what is this PR [ __ ] they're doing? Why does anybody care about this? Just make the [ __ ] game. Like I'm just such an [ __ ] But like I know. I think I'm right. I think I'm playoffs before next 100 days. Xbox recess. That is the title for the memo from CEO Asha Chararma and Chief Content Officer Matt Booty to Xbox staff. Now, this memo doesn't mention layoffs whatsoever. Rather, it is a call for understanding. What it does is it reviews the last 100 days where the work has quote started to revive Xbox. Some of that stuff is real. tidbits like them doing more updates in this new era than they had in the prior year, talking about more active partners than ever, that Game Pass is back to growth, and that players are being listened to, or at the very least feel listened to. Fanfest, of course, is coming back, and the Xbox showcase put the strength of their pipeline on display. It was a pretty damn good showcase. There's exclusive games that give people something to look forward to. She wants exclusive, though. That's an L. [ __ ] them, bro. Like, if Sony wants to keep pushing exclusives, then they should. Sony already pulled back into doing exclusives. They were releasing on PC for a while. Now they decided to roach out. Like, is Soros on PC? [ __ ] you. [ __ ] you. Suck my dick. Why isn't it on PC? I'd play that game if it was on PC. I don't want to play that [ __ ] on a PS5. I don't want have to try to aim with a controller. It's annoying. Of course, all the wild fors of Horizon 6 just show absolutely huge success. But of course, that stuff was in the past. And for the future, staff now need to be aware of the reality of Xbox's situation. Because as much as all of that stuff is good news, numbers talk, right? Leadership claims we won't succeed by hiding hard truths. Nor will we succeed by doing the same thing and expecting different results. I think that's fair. That's a great idea. Fire 343 and Halo Studios and get somebody that knows how to make video games do Halo. There are two franchises that sell Xboxes, Halo and Gears, and Forza is a distant third that nobody really cares about because you can play it on PC anyway. If you if those games aren't good, Xbox isn't good. It's that simple. Enough. So, the next thing for us to do is to understand what those hard truths are. We've got to be real, this is the type of thing we don't usually get. Let's dive into the numbers then. As always with things like this, before any interesting numbers, they like to recap their wins. So they boast about Xbox having a billion players a year with 72 billion hours played across all platforms. There's a caveat, which is that China and some other places are exempt beyond just play. Their shows and films like Fallout and Minecraft that are putting wins in the board for Xbox. That all seems good, and it's especially good to them because they are framing their biggest competition in the market right now as attention. And they don't stop at games either. It's TVs, apps, any format that you can name. All of that stuff is competition that could take away Xbox's players. That language about attention seems to come directly from Xbox's new strategy boss, Matthew Ball. So, yes, we've got Matt Ball and we've got Matt Booty. I was about Dude, I was about to I mean, yeah. What the [ __ ] going on over there? Really? You're like, "What the hell is what's [ __ ] collecting all the mats?" Basically, the attention economy is his big theory here. It's been the spine of his yearly reports. It's his answer for why games like this, by the way. And now, it's Xbox policy. It's a good some hard financial data from Xbox. And that is quite new because their numbers are usually buried inside Microsoft's larger reporting. And that's meant that we haven't had much transparency into how the company's actually doing. For the last 5 years, they've spent over $20 billion on investments in content, platforms, and hardware. And that's of course not counting the Activision Blizzard King acquisition. Slight problem for them, though, is that revenue declined by quote nearly half a billion in that time. That's brutal, and it puts them at a 3% accountability margin. Now, obviously, there'll be some internal accounting tricks in there, but for the sake of argument, that means Xbox are about 3% profitable. And that is a bad number. Very bad numberating. It's below the rate that you could get just putting your money into a savings account or into some relatively lowrisk bonds. So if you're Microsoft and you're thinking about capital allocation, you're almost certainly not going to look at Xbox and think, "Wow, that's fantastic." Now that phrase accountability margin might be ringing a bell for you. And well, yeah, it should be. And that's because a week ago, Asha Chararma told Bloomberg Tech this. My mandate is not 30% accountability margin. It's not enterprise software margins. It's to be the number one gaming and entertainment company. And that's what we're going to go do. Now, seemingly she still does have some mar I mean, I agree with that. Actually, I do. I And also, here's another thing. I'm a player. I don't give a [ __ ] what your margins are. I don't care how much money you're making. Like, I understand business realities, but like if you're making 3% or 30%, I don't give a [ __ ] Like, just make the game. Because she's adamant that 3% is not enough. She says going forward this cannot continue. And let's% is really, really bad. And yes, continue. Next, we get to hardware. And I have to be real with you guys, this is the ugly one. Chararma explains that from autumn to February, storage components doubled in price and that by holiday 2027, they expect prices to be five times what they were in 2025. The same also goes for memory. And where it's interesting is she claims that decisions made over the last 5 years left Xbox more impacted by this than other companies. Now, they claim to still be committed to Felix, but delivering it will require quote a new business model and partnerships for hardware. That's because they aren't even making enough consoles right now. As in, they're unable to make enough Xboxes to handle the current customer base. Xbox, in my opinion, has like there's a lot of guys like me like I'd buy an Xbox if I had to. Don't tell her this. I'd buy an Xbox if I had to, but if I could just play it on PC anyway, I would never buy an Xbox. It's a waste of my money. That's really the truth. Like, and an Xbox provides no PlayStation's the same way. The only reason people buy PlayStations are to play the exclusive games, I think. And there's a lot of people like me that will like if you could play it on computer, you would. It's like five or six years outdated. Yeah. Like I mean my PCs I mean I've got 50/90 right there. Not all that many units in the grand scheme of things. And one of the big reasons why is well these companies sign contracts with their various suppliers. And that's where Xbox has passed as a problem. They needed to be more profitable. So they did not sign up to huge contracts of similar volumes to say the likes of Sony or Nintendo. And that means that now they're in should I buy the Xbox? So on the hardware front it's extremely rough. But it does line up. Like I feel like I cuz that reminds me of remember because they had the uh original Halo Combat Evolved Xbox like this. No, I I would give it away, right? I maybe I buy one, do an unboxing or something like that. It could be cool and then maybe give it away. I think I don't know. Chararma told Fortune earlier in the week, which was that players won't pay thousands for a console and that we could be seeing quote radically different business models that we never expected. Who knows? Maybe we will have phone or internet style contracts for how we acquire our consoles. Maybe they'll be less performant and perhaps at the very worst, well, it could end up in a I think they're going to transition to making the consoles cloud gaming devices. I think that's what's going to happen. It seems like that's the way uh Microsoft has been developing their brand strategy over the last like five years. I think that's what they're going to do. You will own nothing and you'll be happy. You're going to eat the bugs. You're going to live in the pods and you're going to be gay. You're going to be gay. Little bit of a supported Amazon, which I think is a bit of a personal hell. We hit the people in the incoming layoffs. The memo praises the studio system that produced this weekend's showcase. quote, "A reliable pipeline of first and third party exclusives and new IP are critical to our success. That's all well and good, but Chararma thinks that things aren't good enough. Xbox are stewards of quote industrydefining franchises." But what year is this? 2005. Have not quote adequately funded them to compete and win. Thank you. Yeah, you're right. That's true. Halo 3 is one of my favorite games of all time. That statement very much resonates with me and I'll leave it at that. Perhaps it's the same for you. The balance between It is the same for me. I think honestly Halo sold Xboxes. There's nothing right now that sells an Xbox these and their investment priorities will have to say obsessed. And what that means is layoffs and cancellations with their systems and just company backend as well. And one framing stands out in particular that Xbox have quote become too reliant on vendors to operate our systems and must become more self-reliant. I think this is I I think they're passing the buck. I think that they're like I really liked Phil Spencer, too, but I really think that his handsoff approach with letting studios do what they want allowed games like Redfall and games like uh Halo to flounder and fail. And so the issue is that I think they're trying to pass the buck to these different uh studios, but the reality is that your your primary first party studios are failing and your third party studios are failing. So this very clearly I think is a management issue, right? This is a management and leadership issue and it's it's about basically the way that you produce and source games. It has nothing to do with the individual like studios themselves. that that I mean really really I mean how do you not come to that conclusion when you have a control variable right I mean come on as an engineering culture to build for the future honestly that does make a hell of a lot of sense to me and I do think that tracks with where a lot of software is going to be going so in plain terms that's basically her talking about paying third parties for tools or support have you had awful support experiences with Xbox I'm sure heard from many of you that that has been the I put on my Warcraft hat for running the other channel. I remember keenly a story of Blizzard customer service, you know, being farmed out to other companies and in particular one being basically shut down in the way that it used to be with Blizzard and then outsourced, I believe, to a firm in Egypt. To put it mildly, the Activision Blizzard related customer service stories are coming in frequently enough that I could almost run a full channel about it. I suppose it would be some sort of brim comedy. But one thing you'll notice in that is she's talking a little bit like an engineering leader. And of course that's not a surprise. The previous org she headed up at Microsoft was core AI. Yeah. And basically that is move fast, keep everything internal and deliver updates fast regardless of scale, which in fairness to her, at least for the easy and lowhanging fruit that's happened over the last 100 days. But while it's true games or software, they are of course also pieces of art. and the art bit won't always line up with the needs of the engineering culture. The final suggestion is probably the most interesting part of all of this. You see, while generally they say they'll be rebuilding and reviewing, there is still the potential for more mergers and acquisitions to deliver on the future that she's laying out. And she says this is across hardware, PC, mobile, and streaming because Xbox can afford that somehow. I mean, they can afford it. It's just about them being able to capitalize on it. That's the problem they have. It's not that they don't have the money. It's that they don't have the leadership expertise to maximize the money. That's the issue. It's just there's other things they can't afford. And so across the whole memo, there is a clear trend and it is this. Mhm. What Xbox have been doing just isn't good enough. One statement in the studio section seems to underline Chararma and Booty's point. Here's the quote. We expanded our studio system when we needed a pipeline of content to meet multiple strategies across subscription, streaming, and devices. In the process, we have found ourselves overextended as we executed on changing strategies in a landscape of more readily available content. Overextended is basically them setting up that layoffs are due to happen. Being wrong. Well, I mean, did they even need to set that up? I mean the moment like harsh truths we need to recognize and this is coming before anything happens. Oh yeah, you're done with you. I do also feel that that statement is broadly right. And of course that's a reflection of Xbox not really being ran in a strategically cohesive way over the years. And really this is why they keep talking about a reset. The idea is that Xbox were great but they lost their way especially in those 5 years where the revenue fell. So basically it is a fairly simple make Xbox great again strategy. They basically kept expanding and as they expanded which of course will have increased loads of their costs they also kept changing strategies and that meant that they the tone and the focus of their games is wrong. Like, and I they need to understand this, like the way that you develop video games. Like, if you look at, for example, the characters in Forza, they look like disgusting abominations. Why does Cortana look like she's 45 in the Halo remake? This kind of stuff matters. Like, it it does. And why are you making video games that aren't appealing to the audience fundamentally? And until they're willing to like put the foot down on their development studios for doing garbage like this, then they're going to keep having problems. And this stuff does matter. It matters a lot because people don't want to see these charact. They don't want to look at these characters. They don't want to see them. Like it's just that simple. That's why you look at go like look at the two games, right? Stellar Blade and God of War Lie. Which one have we seen more fan art and more cosplays of? Oh jeez, guys, that's a hard one. So the entire concept of this is that you keep developing video games that are not necessarily what players want. And I think that this is a meta level problem. It manifests inside of the media and it manifests inside of game design as well. I think people notice that immediately and it's offputting. It's a huge problem. bought things for one purpose, then had their strategy change after the fact, leading, of course, to chaos and mess. But here's the thing that as a community we really need to understand. Everything Sharma is talking about as being a hard reality, the constraints are set by Microsoft. The hard reality is set by Microsoft as CEO of Xbox. That's the reality she has to operate in. Across 5 years, excluding Activision Blizzard King, there was $20 billion in games investment. all that for a 3% profit. Now, a since denied report did suggest that buying Activision Blizzard King was the alternative to just closing Xbox entirely. And that's because Xbox, in addition to losing this generation, also lost the generation before it. They didn't they didn't lose the generation. They actively sabotaged themselves. They they intentionally failed. They did the most consumer unfriendly product reveal that I think we've ever seen in media at least recently and they were totally beaten in the market. What they were forcing the Xbox One forced you was it Xbox One? I forgot even which one it was. I think it was Xbox One forced you to be always online and to not be able to have used games and resell them. And it required you to have a webcam attached to the Xbox at all times. That's right. And thanks to Sony that that didn't do any of that with the PS4 that Xbox had to go back on it have the hardware sales. Console production took a backseat because Xbox needed to be more profitable. The 30% margin was effectively a target. That meant the end of exclusivity and the entire this is an Xbox thing. That all spread from reality set by Microsoft and their risk tolerance, their tolerance for shortterm pain in service of a medium strategy. Now, here's the thing, right? Their multiplatform strategy is still in effect. They've just realized that they can't market Xbox by saying that Xbox is weak and you can get their games anywhere. So, their new plan is to market perfectly to the Xbox fan base, but in terms of the other calls, it's all still in that same reality set by Microsoft. So, the easy way to put this is their strategy is to have their cake and eat it. Elsewhere in the memo, Game Pass is said to be recovering after more than 8 months of decline. That's of course because back in October, Microsoft pushed for higher margins and Xbox quite simply didn't have any other levers they could pull. Well, they just they almost doubled the price of the old like I I used you remember I used to recommend Game Pass a lot. I used to be a big S for Game Pass and in a way I still am, but the the cost of it is just too high. And like the problem is that they're doing the same thing with Game Pass that Netflix did where they initially started out with a great product offering that had a lot of uh variety and diversity to it and then slowly they enshidified the product offering until it no longer had the things that people originally went there for it uh went there to it for and so like yeah they cut it again. Exactly. Yeah. They they had to lower the price and it was just it was too much. Right. And and now I I'm kind of like on the fence about Game Pass. Like I I have Game Pass, but I don't really use it a lot. They couldn't just rush out games, especially when a unique storm of a Call of Duty failure hit their business. Think about then that investment in franchises and studios that Chararma says she wants. Xbox have spent the last four years somewhat being stripped to the bone, cancelling long in development games like say that MMO from Zenax that had apparently been in development for a long time but was actually said to be an excellent game according to people who um claim they know what Xbox leadership thought about that project. They've been doing other things like culling studios and the impact of those cost cutting actions led to staff banding together and massive teams like say Overwatch and World of Warcraft unionizing. But at the end of the day, how did they let those people do that? You a union, bro? Like where are the Pinkertons? Where are they, bro? I thought we got rid of this percent is not enough. There is no real way they can get huge influx of money. That means more layoffs, cancellations, and studio closures are coming. Now, I want you to think about the whole five years and 20 billion in investment. Right? Think about that. By comparison, Microsoft intends to spend 10 times that on AI alone in just 2026. And to give you an example of the economics in this, XAI's Colossus 1 data center is said to have cost around 8 to9 billion because of the compute crisis, the shortage of compute. They are currently renting that to Anthropic for 1 billion a month. And then there's the Google deal with XAI, which is pretty much another billion a month. Everybody's trying to make God. They're all trying to build God. Nobody knows how to do it. I think that they're all just expecting to get lucky. Isn't it crazy the amount of money that they're spending on this? Basically, that is the return on investment that you can get just by building compute focused data centers. So, in a world where the likes of Colossus 1 can quite literally repay itself in a matter of months, what do you think about money going into Xbox? Because at the end of the day, opportunity cost is a thing. They only have so much capital to uh throw into things. Why throw into Xbox when you can throw it into something that has a demonstrabably higher rate of return, a faster rate? I disagree with Belle's analysis here. I think that Xbox exists inside of a vertical integration catalog that Xbox and Microsoft are leveraging as a product offering in its totality. You can look at it kind of like Twitch with Amazon. Twitch might not make money inside of, you know, itself, but it existing inside of the ecosystem as a effectively loss leader or some other way to get people and users inside of the Amazon or the Microsoft ecosystem. Uh, that's where the value comes, right? And so like I I don't agree that Xbox has to make money because Xbox exists as a small piece of a massive product strategy. That that's my opinion, right? But they have to expand what Xbox is in order to capitalize on that customer in comparison to the 3% accountability. A lot of examples for this. But where Charmer's position gets even more grimly funny is if we connect the dots. The memory that Xbox cannot afford is the memory that Microsoft's AI data centers are buying up. Somehow Asha Chararma left her job of 2 years as president of core AI products at Microsoft and is surprised that hardware prices are up. I do not believe that she is surprised about hardware prices being up to state the obvious. But what it all does add up to is pretty much the same position. an Xbox that has to cut costs, that has to become more profitable. It seems chararma has been given enough wiggle room to operate on a longer time horizon than uh Bond and Spencer were. And that probably will be I don't I I actually think it's the opposite. I I think that she probably was given a shorter time frame because like I I mean Sarah Bond was the I mean she was running Xbox for like three or four years, I'm pretty sure. And like Phil Spencer was there for a really long time. So, I bet they're probably fed up with this for Xbox, but it absolutely doesn't mean young people get hyped for consoles anymore. It's just that it will be pain alongside the story of renewal and ability. The problem now is that like a lot of like young like I'm talking about like 15 and under like games like I'm not 15, right? Like, but I I mean, this is what I hear and what I see is that a lot of the younger people like they're playing games like Roblox and Fortnite. They're the way that they consume video games is profoundly and fundamentally different than the way that like you or I consumed video games with like a Super Nintendo or like a GameCube or PlayStation 2. So, I think that the problem is that consoles are effectively they're becoming antiquated media, like an antiquated media platform, right? Like a a VCR almost. So, I don't know necessarily it's connecting. Yeah, they're on Yeah, people are on their phones, they're on a tablet, they're, you know, doing this on a computer or like they're they're using an Xbox, but like the Xbox is just simply a portal, right? It's not like the Xbox unlocks anything that's unique. Same as the PlayStation. core fans and making names of things all caps. That's what it was like in the past. And if modernity's taught us anything, if you want people to get in your side, just say current day bad, past was better. Make future like past. Thumbs up. I think that's how it all works. But with that said, when the new leadership took over, Booty made a promise. Here it is. Quote, to be clear, there are no organizational changes underway for our studios. But didn't they just close the studio last week? Or was that somewhere else? I forgot. I thought it was like last week. By the time he was there, maybe they were being planned in his head, but they certainly weren't underway. So, he didn't lie. But it's just over a 100 days later. And now we're in an era of describing Xbox as quote not in a healthy spot of saying that a reset is needed. That's because fundamentally what Chararma is proposing is in its very essence no different to what has been materially happening over the last 5 years. It just has a different coat of paint. They are fighting an attention war by doing bold strategies such as cutting the people who made the things worth paying attention to. She's maybe got a different set of minds from Microsoft and has more latitude to exert her own leadership judgment. It seems that she's decently trusted by Nadella and the rest at the top of Microsoft. They probably put her in charge because she was doing something that was successful. That level of trust means that yes, Chararma is a company, wasn't it? They actually do trust her to use her own judgment to push back on some of the maybe short-sighted things from the board. And maybe it's the case that the board quite simply didn't trust Spencer and Bond in that same way. Chararma's been building this new strategy. Why would they? They've only delivered else tangled web of every staff have been trying to build a business that could survive Microsoft scrutiny all because the line had to go up. It did not go up. And what happens if Xbox does not deliver? Now I think there's a better question. How much more can Xbox be cut? I'll leave you with that and a simple recommendation. What we've talked about here is the reality of the situation. What we talked about in part one is the charm offensive. And now is actually a brilliant time to go and watch part one because you can see the difference between the charm offensive and reality. I think it's going to be honestly I think they're going to have to fire way more people because like you're seeing this across the entire gaming industry. There's some studios that are doing it a lot less like for example Capcom, but like there are also um foreign studios. So the way that layoffs and things like that are being publicized, it's not really the same thing. like Square Enix, you got to remember that like last year Square Enix let go uh like the majority of their uh English division, right? Like all of those people that were involved all pretty much got got let go. They should hire you for consultation. They wouldn't tell me what I need to know. Like, so the the plan I bet the plan for Xbox is something that is like a like an executive board level plan because I like this is my my my conspiracy theory is that I think that they're trying to design for cloud gaming. I've saw I thought this for years. I think this with the Game Pass. I think this with like this is an Xbox. I feel like they're trying to use that messaging. Like that's their goal. And so they're just waiting until they can bring a product like that to market. And I think that's also the reason why, you know, we've had the current Xbox out for so long. It's because they know that like right now, like for example, the Nintendo Switch 2 was a Nintendo Switch, for example, was like a transcendent device, right? The Wii was a transcendent device. Uh a PlayStation 5 really wasn't, but I would say like a PlayStation 3 was a transcendent device because it could do Blu-ray. And so, like, what does the Xbox bring to the table that's unique that adds a user uh that brings a user into the ecosystem that would not naturally be there? And I don't really think that they have that. And so, that's probably why they're holding back. Xbox handheld, I don't think people care about that. Nintendo already has that. You already have the uh, you know, the the what is the ASUS, whatever the [ __ ] uh, and then you have the Steam Deck. So, you already have too many other things that are inside of that market. So, I don't know, man. Input lag. I think that and I have a very unpopular opinion about this and people disagree but I think it's true. I think that input lag affects less than 10% of gamers like input lag inside of cloud gaming assuming that you're on a wired connection that is a high-speed wired connection. I think that less than 10% of gamers experience a tangible decline in quality through uh uh through input lag with cloud gaming. I think that's accurate because like and and the reason why it affects me heavily well like and and and I I'll go through the list of why that is. Um number one, not every game really matters for input lag. If you're playing a turn-based game, it doesn't make a difference unless it's Expedition 33. Uh if you're playing a uh if you're playing a game badly, it doesn't matter. If you're playing a video game that is single player that's easy, it doesn't matter. So like there's a lot of things and a lot of types of games that you know surprisingly large amount of people are playing. Not everybody's playing Elden Ring. Not everybody's trying to play Valerant. Like they're playing [ __ ] games. Souls like it matters. Yeah, but Souls like is one it's one genre. Like there's everything else. Poll it. I think overwhelmingly people in my chat will say input lag matters because look at the selection bias we're talking about. We're watching YouTube videos about Xbox's product plan. We're nerds. We're absolute loser nerds. Of course, we care about input lag because we're video game players that play constantly. So, I'm talking about people that are beyond that, right? Like average people. Like, and I think average people that's not the case. So, uh are you supposed to dodge enemy attacks 33? You have to factor in frame generation that's being popularized. Well, again, the way that they can do that is net code, right? I mean, the same as they have roll back and net code for Street Fighter 6 or for Valerant. I mean like the input lag is is not an impossible problem to solve. You just have to solve it through an aggregate and not necessarily improving the uh detection, right? And so that that's really what I think is going to happen and except for years we didn't stand in I get hit by that thing. Yeah, exactly. That's been happening for a long time. So that's where I think things are going. That's where I I you're such a nerd. I mean I Well, no, this is the way it is. I mean that's that's I mean these are that's what the words are. Those are the games that I can use as examples. That's just how it

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