Tom Warren

But going back to that sort of era, they lost that generation, right?

And it was a huge cost to them because that was the generation that people started their digital libraries, right?

People on PlayStation have built up those libraries.

They're not willing to move away from those libraries now.

So they knew they'd lost that real key generation.

So the response was, let's do Game Pass, because that will allow people to bring their games to different devices, you know, this whole cloud vision, mobile, etc.,

So I think that was the only kind of response they could, and it was designed to be consumer-friendly, right?

Like you got day one games that they published immediately.

So they took a bit of a risk.

It was quite a bold move, really, to do that, and still Sony doesn't do day one games, for example.

So they took a risk.

The problem with Game Pass that's happened, obviously they've had to fuel it with content, right?

So they've done all these acquisitions, Bethesda, Activision Blizzard,

Nameless others as well.

But the problem then with Game Pass is that you're giving your games away with a subscription, but you need to scale that up, right?

So it needs to hit a certain amount of million people that you've got that concurrent revenue every quarter and you can rely on, where it isn't cannibalizing or eating into the traditional sales of those games that fuel the costs for developing these games, which frankly are just getting...

it's getting more more complicated to develop games these days and a lot more expensive um so they've had those issues with game pass um and ultimately i think the strategy was to to respond to try and get that growth right to try and scale up this idea of um and the way they put it was three billion gamers right that was the launch of xcloud and and remember xcloud and

now it's called exports cloud gaming was originally a mobile play so it was literally to try and get people into the idea of playing streaming on mobile with these with these attachments to your phone essentially and

Exactly.

So they hit a bunch of regulatory hurdles.