Deconstructor of Fun TWIG #339 Merge Games, Gen Z Spending Patterns, and the Shift inside Studio Cultures
Jul 11, 2025
The hosts dive into a fiery critique of Supercell's recent strategies and IPO rumors. They analyze critical topics like the profitability of Xbox Game Pass and the ramifications of Apple's EU regulations. Gen Z's evolving spending habits are explored, shedding light on mobile monetization trends. The conversation shifts to the Merge game genre's potential revival and breakthroughs like Mecha Break. Additionally, they discuss changes in studio cultures and where investors are placing their bets in the gaming landscape.
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Game Pass Profitability Illusion
- Microsoft's Game Pass might be profitable by accounting standards but masks deeper economic losses and market shrinkage.
- Hardware sales decline squeezes active users and fundamentally weakens Xbox's market position, contrary to some optimistic P&L claims.
Supercell Should Ditch PR
- Supercell should stop active PR and interviews as their mixed messaging damages their image.
- Focusing on their annual blog post and letting their games speak for themselves is a better strategy.
Gen Z Pulls Back Spending
- Gen Z spending on video games dropped significantly, contrasting with smaller declines for older generations.
- This could signal rising financial pressure on young adults, making video games less recession-proof than before.