Founder and author of Stratechery, an independent publication analyzing technology strategy, business models and the economics of digital platforms.
GTA 6 represents the peak of pre-AI AAA game development with years of craftsmanship, giving Rockstar immense pricing power that the market underestimates at current $80 price point.
The sovereign writer model — direct paid subscriptions, global reach via Stripe, minimal fixed costs — unlocks a massive long tail of viable media businesses; the internet enables infinite 'ponds' where creators can be the big fish, and AI further lowers production costs.
Game Pass failed to attract new gamers and merely cannibalized existing high-margin game sales, while Microsoft's living room strategy failed because consumers buy consoles for games not as internet portals.