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[–] 173 points 8 months ago (28 children)

I’d be surprised if Xbox is a thing in 5 years after this news. The way things are right now Microsoft can’t make an Xbox console that will succeed by any metric. Maybe it’ll stick around as software.

Phil had to salvage the brand after the fucking disaster that was Xbox One and I don’t think he was terrible but it clearly wasn’t working out.

Replacing him with the head of Core AI is a fucking joke though.

With the cost of hardware skyrocketing and Sony closing studios gaming is in a really dark place right now.

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  • [–] 36 points 8 months ago (5 children)

    I wonder if this is a huge demotion for the AI guy. AI teams in Microsoft are "good" right now, I wonder if he fucked up in some way and they put him on xbox.

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  • [–] 37 points 8 months ago (4 children)

    Yeah I don’t know. The knee jerk reaction Is “hey make Xbox have more AI”. She at least has the sense to have her first press release say “we’ll have no AI slop in our games” but we’ll see if that lasts.

    CoD has been caught using AI art already.

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  • [–] 5 points 8 months ago

    The thing about that press release is that it fairly cleverly doesn't say "no AI." It says no slop. She'll push AI, it'll create slop (as always), but she'll argue it isn't slop and is actually great.

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  • [–] 47 points 8 months ago (4 children)

    Gaming is in a great place. AAA gaming is not, because of-fucking-course corpos don't understand art.

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  • [–] 7 points 8 months ago* (3 children)

    It’s in a dark place because it is going to eventually become unaffordable to those who haven’t purchased a console or pc or handheld yet due to the ram shortage. I guess mobile gaming will become the main focus like it is in China.

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  • [–] 2 points 8 months ago (2 children)

    Given all the fun I've had over the years with far less powerful systems, it's not exactly a deathknell to gaming if it turns out that way.

    It just better be the deathknell for terrible mobile game microtransaction structures and p2w schemes if mobile devices become the new norm...

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  • [–] 2 points 8 months ago (1 child)

    My hope is the EU and China start to regulate mobile gaming for it to become less like casinos for children.

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  • [–] 2 points 8 months ago

    Fully agreed with that.

    In fact, such regulations really need to go a lot further and make illegal straight up unnecessary subscriptions, too. If something doesn't need actively maintained things outside of the actual product for it to function, then it doesn't 'need' a subscription model.

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  • [–] 23 points 8 months ago*

    A silver lining is that the NVIDIA/OpenAI deal was cut by ~70% this week, so hopefully the reality of AI not being a panacea sets in for those who have been driving the prices up. If the planned data centers never actually get built, production will shift back and consumer pricing should adjust accordingly. The MBA class will keep trying to manipulate it artificially of course, but they'll only be able to keep the ruse this far from reality for so long.

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  • [–] 10 points 8 months ago (1 child)

    Xbox is just going to be a brand/publisher I reckon.

    There’ll be ‘Xbox verified’ console PCs or somesuch that aren’t necessarily made by Microsoft, and there’ll be the Xbox app for games and streaming, and Xbox published games.

    And then another 5-10 years later they’ll phase that out and just be ‘Microsoft Gaming’ or somesuch branded, and the last traces of Xbox will be gone.

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  • [–] 2 points 8 months ago

    It's already just a brand, Xbox is just their gaming brand. Xbox Game Pass isn't limited to Xbox hardware. The first Xbox branded computers not made by Microsoft are already available (Asus ROG Xbox Ally). The real question is how long will Microsoft make hardware under the Xbox brand.

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  • [–] 2 points 8 months ago

    I see it as a good thing, maybe another videogame market crash is exactly what we need so they'll understand that not every game needs to have an overblown budget, bloated content, micro transactions, massive player retention, sell a billion copies and win awards to be a good game, it's about time videogames are recognized as being pieces of art first and products second

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  • [+] -40 points 8 months ago (11 children)

    It's not all bad. AI can make some great creative games with lots of soul. There will be hundreds.

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  • [–] 25 points 8 months ago (8 children)

    Please add /s if you’re being sarcastic because otherwise you just look like a fool.

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  • [–] 8 points 8 months ago (7 children)
  • [–] 16 points 8 months ago (6 children)

    You’d hope, but it’s 2026 and there are some people who fucking date AIs. And fuck them.

    Soooooo yeahhhhh, clarification would be appreciated.

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  • [–] 3 points 8 months ago (5 children)
  • [–] 6 points 8 months ago (2 children)

    Depends, who's asking and what AI model are you based on? Pics.

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  • [–] 103 points 8 months ago (5 children)

    Crazy how Microsoft spent the GDP of a decent sized country on acquiring game developers to bolster Xbox, then gave that strategy about 25 months to actually work before deciding "nevermind, pivot to AI then sell it for parts."

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  • [–] 28 points 8 months ago (3 children)

    They really fucked up on their marketing by saying everything is an Xbox. Confusing non-gamers, annoying real gamers, and disappointing aspiring gamers.

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  • [–] 16 points 8 months ago (2 children)

    I wonder if the incoherent Xbox names hurt them too. I'm not into Xbox, but I couldn't tell you what is the latest model, or which model follows which. This is a barrier for entry to the ecosystem.

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  • [–] 100 points 8 months ago (12 children)

    Literal definition of Monkey's Paw:

    All the Phil Spencer haters get to rejoice that he is gone. But now he is replaced by a woman who has only ever had AI related positions at Microsoft, and previously worked at Meta.

    Even her letter to employees sounds AI generated.

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  • [+] 36 points 8 months ago (4 children)
  • [–] 14 points 8 months ago* (last edited 8 months ago)

    Phil actually made games

    He did???

    Like, seriously. The guy was in charge for 10 years. He did jack shit, and none of his first party studios managed to create something worth under his leadership.

    A few years after shutting down Lionhead, he and Bond talked about "learning from past mistakes" so that it wouldn't happen again. Years later, he shuts down Tango (the day before Matt Booty praised their game as something Xbox needs more of), Toys for Bob (and then, when they buy back their independence, contracts them for an Xbox game, because what is consistency?), Turn 10 (now a support studio), Arcane Austin. Rare spent half a decade working on a game that never got past its pre-production phase. He hyped Coalition as the "world's first AAAA studio", then unceremoniously shut it down with nothing to show for it despite working for 7 years and with outside help on one game.

    343 was mismanaged for years and he never did anything to fix that, either. Of course that bit him in the ass when he bet everything on Halo Infinite, the only first party game to launch alongside the Series X, which was eventually delayed a year later. An entire year without first party games for their console. (Yes, Covid was bad for everyone in the industry, but their competition was able to release games in that timeframe). He then hoped for Starfield to save the day, which obviously didn't happen, and by then everyone's patience was over. 80 billion dollars down the drain for what? If I was anyone in a position of power at Microsoft, I would be pissed too.

    He spent a decade pushing for GamePass and Xcloud, but never marketed it outside of niche audiences. I live in Italy and I've never, ever seen an Xbox ad in the past ten years. I can assure you none of my "normie" friends and family know what the current Xbox is called, let alone what the fuck GamePass is. The shit is so bad, my brother thought Cyberpunk 2077, a game that premiered on an Xbox E3 and that Microsoft had exclusive marketing rights for, was a PS exclusive. Could you believe that? Heck, everyone I talk to is surprised to hear that the Xbox One and Series offer retrocompatibility for OG Xbox and X360 games because, guess what, they never ran ads for that, either.

    So many things went wrong with Xbox under his leadership, you could probably convince me he was working undercover for the competition to tank the brand. I honestly fail to think of one thing he did that worked. Like, I could go on for days. Heck, I'll do one more: he spent the last few years attempting to merge the Xbox, PC and mobile audiences, yet using the Xbox store on PC is still a miserable experience that makes you wish you were using any other storefront. Ten years! He couldn't find the time to fix that? Did he forget? Did he even care in the first place?

    Spencer did jack shit for Xbox. The guy made promises every year, every year delivered nothing but lies, corporate bullshit and "how do you do, fellow gamers?" moments.

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  • [–] 0 points 8 months ago

    If anything Phil deserves his own company. If he made the call I'm sure many he got to know at Xbox and Microsoft would answer the call and make a new company with him

    Hoping he would especially one like Valve. But it all depends on if he would be up for that and if everyone asked him to to show he would have huge support from day one

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  • [–] 2 points 8 months ago (5 children)
  • [–] 3 points 8 months ago (4 children)

    Her name is in the 3rd sentence of the article posted by OP.

    But, as a special treat for the lazy, her name is Asha Sharma.

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  • [–] 3 points 8 months ago (3 children)

    So much of the Verge is paywalled these days it's completely understandable for someone not to bother clicking through.

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  • [–] 1 point 8 months ago* (last edited 8 months ago) (2 children)

    [I removed this link, but it linked to an archived of the article to avoid giving ad revenue to The Verge]

    It isn't hard to access and read an article without giving ad revenue or what-not to the site owners.

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  • [–] 1 point 8 months ago (1 child)

    archive.today/ph is used for DDoS attacks and was caught tampering with content on its snapshots.

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  • [–] 1 point 8 months ago

    Okay, then use a different archive link. My point is, its not a monumentally impossible task to read at least to the 3rd sentence of the article, even if you don't want to follow the direct link to avoid giving ad revenue to The Verge.

    Someone said that it wasnt out of laziness that someone wouldn't have read the article, and my point is that it is out of laziness. It wasn't even at the end of the article.

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    [–] 88 points 8 months ago (10 children)

    Considering how the person replacing Spencer has been known from leading Microsoft's AI division and isn't much of a gamer, this doesn't make Xbox's future rosy. Dwindling sales, large layoffs and RAM prices skyrocketing... I highly doubt they can build a competitive console.

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  • [–] 47 points 8 months ago (3 children)

    Hey don't discount them that much, they also can't make games either. They're going for full on business-only approach, consumers are not a priority for them at all anymore.

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  • [–] 13 points 8 months ago*

    You can sell consoles with advertisement and marketing. The product is a secondary concern.

    And with AI + bunch of privately owned mass media, you can saturate the brains of the next generation of gamers with endless targeted ads.

    Fully expect Discord to begin vomiting ad spam into random chat streams like Reddit channels are getting bombarded with Crypto Casino promotions.

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  • [–] 7 points 8 months ago* (last edited 8 months ago)

    My guess?

    Former AI guy's job is to figure out how to make AI make video games, and in the meantime, figure out how to cram AI data scraping into absolutely every possible element of ... whatever Xbox Live is called now.

    The first will almost certainly fail, the second is much easier and will make the division more profitable untill it gets axxed after the first thing totally fails.


    EDIT:

    Erp, its AI gal, not AI guy.

    Asha Sharma.

    But... her recent LinkedIn history outside of MSFT is:

    Board Member of Home Depot (ongoing)

    Board Member of Coupang (ongoing)

    (A Fortune 200 tech platform and South Korea's largest e commerce company)

    COO of Instacart (2021-2024)

    Headed up, among other things, data science.

    She was also apparently a VP at Meta/Facebook, before that.


    Oh hey, I've done data analytics, I've done data science!

    I've even also done lower level grunt work at MSFT!

    Yeah I am 100% certain of the second part of my guess now.

    Less certain about the first part, as she has literally no background with game development, as far as I can tell.

    IMO, she is absolutely going to be put in charge of squeezing every last possible drop out of Xbox, which MSFT will most likely just transition to being basically a publisher only/primarily, given how many big IPs they own...

    ...and they'll probably switch over to a new person after there's basically nothing left to squeeze, after they've essentially functionally randomly fired at least 50% of the people working for the studios they now own, and essentially randomly reorganized the remainder of those people into different or new studios, see Ubisoft.

    "Best" case scenario, after the AI bubble pops, she manages to figure out some kind of partner ship with either Nvidia or some remaining firm that has a bunch of AI datacenter GPUs, and then we get Xbox's attempt at Google Stadia.

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  • [–] 6 points 8 months ago (2 children)

    If ram goes up for everyone, Microsoft is no worse placed. There will be less sales overall, but they could take a larger piece of that pie of they were good. They won't.

    One thing that might go in their favour is pc gaming. If ram and video cards get super crazy for long enough, people might have a single PC and gaming console. The steam deck should be well placed to take advantage. Microsoft could be too, with foresight.

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  • [–] 4 points 8 months ago

    I was honestly surprised when we got the Series. I was pretty convinced that they were done with consoles after the One X|S and that Xbox would become more of a Steam competitor as a brand. It wouldn’t surprise me if the Series ended up being the last console.

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  • [–] 72 points 8 months ago

    I would leave a flaming wreck too.

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  • [–] 49 points 8 months ago

    Spencer leaving Microsoft: Yay!

    Spencer being replaced by a Marketing Exec who leads an AI division: FUUUUUUCK

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  • [–] 40 points 8 months ago*

    I'll not sure Spencer had been doing a great job, but this feels incredibly abrupt and makes me wonder if Xbox's next generation hardware plans are cancelled in favor of a software and AI approach. The new CEO being an AI suit makes me think they want to take shit it a very different direction.

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  • [–] 26 points 8 months ago (1 child)

    Phil was probably the last thing keep Xbox from fully imploding. You could tell he was an actual gamer that cared about the Xbox as a games console and not whatever Frankenstein they are going to turn it into.

    It’s sad but Xbox had a really good run. Xbox won’t exist beyond the next console generation, it may not even make it that far before it just becomes gamepass.

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  • [–] 18 points 8 months ago

    I was going to say "good riddance", but considering that his replacement is a former AI exec... Lol.

    To be fair, I don't envy anyone who is put in charge of the mess that is Xbox right now.

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  • [+] 36 points 8 months ago* (last edited 8 months ago) (7 children)
  • [–] 2 points 8 months ago

    XBox will still get development as long as Microsoft wants gaming on PC on a way it can somewhat control. Part of the reason why the XBox got made was because Microsoft already developed the software required to make a console.

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  • [–] 1 point 8 months ago (3 children)
  • [–] 16 points 8 months ago

    Microsoft needs to have a sit down with Sega on how to become a decent 3rd party developer.

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  • [–] 16 points 8 months ago (1 child)

    I wonder how much of this is the big bet that they placed on buying up Activision Blizzard (plus other studios) and not being able to show enough growth on Gamepass?

    And now of course, with skyrocketing hardware costs, and the ripple effects of tariffs before that, even putting MS’s preoccupation with cloud services and AI to one side, the console business probably isn’t the money spinner it once was.

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  • [–] 16 points 8 months ago*

    After Mattrick, they probably shouldn't have promoted internally from the executive class that went along with the pivot of internal studios to kinect and home theater media center. They needed leadership that knew how to deliver quality games on time. Saw Sony hit its stride mid-PS3 era with the advent of the AAA narrative action adventure game and could never adjust to that. I know American company, but maybe they should have looked to Sega, Capcom, Koei Tecmo to lead Xbox game studios and someone else to lead hardware and services. Xbox was at its best when it was paying for timed exclusives in the 360 era from third parties and funding 2nd party exclusives. Their internal studio production has been weak for like 20 years. Halo, Gears, Forza Motorsport, Fable has fallen to all of them in the doldrums and Forza Horizon being their only high tier Xbox associated IP now. I'd take someone from Square Enix today to lead Xbox studios today. The last decade they've churned out games even though mostly not AAA, they're mostly solid games and satisfy a lot of niches like Dragon Quest Monsters. Square Enix games are oddly experimental and creative for such a large publisher. Something Xbox sorely lacks. Master Chief is barely surviving as a console mascot and that's practically all they have at this point. Conker and Banjo are irrelevant with how they've handled those IPs

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  • [–] 14 points 8 months ago

    They're gonna fuck up Forza Horizon 6 and Fable, aren't they? I was cautiosly optimistic about those two under Phil, but I'm pretty sure they're doomed now

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  • [–] 24 points 8 months ago (8 children)

    PlayStation outlives yet another competitor.

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  • [–] 4 points 8 months ago (7 children)
  • [–] 8 points 8 months ago* (3 children)

    Sega Saturn and Dreamcast, 3DO, Atari Jaguar just to name a few. Soon will be adding Microsoft’s XBOX to the list.

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  • [–] 2 points 8 months ago* (2 children)

    3DO and Atari were never really competitors. They were minor players in the console market that were already considered unsuccessful by the time the PS1 was released.

    Sega is one company. Sony has outlasted one competitor, which makes it odd to say "yet another" almost 30 years later.

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  • [–] 2 points 8 months ago (1 child)

    That’s a nice opinion but Atari and 3DO were selling consoles at the same time PS1 was out. That makes them competitive, no matter how large the margin.

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  • [–] 2 points 8 months ago

    Sure, Sony "outlived" two minor competitors that were already failing when the PS1 released.

    Much like how I outlived actor Carey Grant, who was 80 years old when I was born. That's definitely how I'd phrase that.

    But hey, those examples were "just to name a few", so there must be more, right?

    But seriously, the way your original comment was phrased makes it sound like Sony is some kind of console war juggernaut, outlasting its many competitors over decades. The reality is that Sega folded to Sony and Nintendo back in the early aughts, and then it was 25 stable years of having three big console makers, and that's it.

    That's all I'm saying.

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  • [–] 1 point 8 months ago

    Aside from Sega I was going to toss Atari on that list but TIL they are very much still making new hardware, except it's all targeted for retro gaming. Different focus and not a true competitor to Sony but technically still kicking.

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  • [–] 11 points 8 months ago (1 child)

    A simultaneous retirement/resignation says to me that the two of them were asked to do something very stupid or very unethical. And they've stomached a lot of unethical lately.

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  • [–] 10 points 8 months ago

    How sad for Obsidian Entertainment to go the same way as Black Isle Studios... but they probably will when the Xbox division completely fails.

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  • [–] 9 points 8 months ago

    Makes sense, Xbox is barely a thing anymore

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  • [–] 7 points 8 months ago (1 child)
    [–] 5 points 8 months ago

    His name was Ozymandias, King of Kings.

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  • [–] 5 points 8 months ago

    If Spencer couldn't keep the Xbox machine alive, an outsider who's not a gamer is gonna ruin it more so than it is

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  • [–] 4 points 8 months ago

    Good. Phil Spencer may have been a better lead for Xbox during the OG and 360 years, but the XB1 was a joke and the Series X, while pretty good, could have been better. And doubling the price of GamePass Ultimate made it a non-starter for a lot of people. Half the price of a game every month and I don't get to keep any of them? Huh? At $15 it was a no-brainer; at $30, it's a non-starter. And they sold the Series S on GamePass.

    Sarah Bond always annoyed me. Seemed like she was always badly trying to put out a fire. I don't know where she was before, I'm sure she earned her spot somehow, but she always seemed like the "bad cop" in most situations.

    As for PlayStation, they're run by bankers and lawyers, not gamers. I liked the first two PlayStations. PS3 was definitely better than XB1 (even though XB1's contemporary was the PS4... PS3 was still better). I haven't had a PlayStation since PS3, but I don't like how Sony does business. That said, they're Japanese, and they make/own a lot of the anime and music I listen to (I listen to a lot of Japanese music). But, that's like saying Samsung phones are good because their refrigerators are. It's a fallacy at best, but it's mostly bullshit. PlayStation is very much its own thing at Sony. And I don't agree with most of their decisions.

    Steam looks like the least crappy option right now, with the Switch 2 being fully last-generation and costing like $500... and the games being $80 each... Screw that. (Switch 1 is still cool for what it is, the 2.5D Zelda games, and Animal Crossing. If you're into cosy/chill games.) I kinda want a Steam Machine but I won't pay $1000 for one. I think people thinking it will be $500-600 are huffing some serious hopium. $700 feels like a compromise between what gamers want it to be ($500) and what it probably will be ($1000). They want Valve to take a loss on each unit because they kiss up to Valve on social media, but Valve has already said they are not going to sell it at a loss. So all I'm saying is... get ready for a four-digit price tag. Especially if it's gonna run modern games at good framerates and resolutions. The one thing I can say for the "it'll be $500" guys is, the M4 Mac mini is $500 and that can run Cyberpunk. And it's a whole Mac, so you know it's a good computer. Thing is, most game devs aren't friendly to people who actually put their money where their mouth is and actually kick Microslop to the curb. They'll support Linux hoping you'll just go back to Windows on the same machine, but you buy a computer that (AFAIK, until Windows for ARM comes out) can't run Windows... then it's FU in particular. (And honestly, no one really buys a Mac for gaming. They're just cool computers that aren't PCs.)

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  • [–] 1 point 8 months ago

    This ain't it!

    Chief

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