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Microsoft completely misjudged Baldur’s Gate 3
(www.polygon.com)
Baldur’s Gate 3 is a story-rich, party-based RPG set in the universe of Dungeons & Dragons, where your choices shape a tale of fellowship and betrayal, survival and sacrifice, and the lure of absolute power. (Website)
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They're not thinking about these things as games, generally, but specifically how they'll be perceived by the Xbox audience. It looks to me like they discounted BG3, at least in part, because it couldn't split-screen on series S. They're thinking about games you play on the couch, in a group, maybe during a party - not games you play solo for hours or days on end.
That may end up being a self-fulfilling prophecy. BG3 isn't out on Xbox (officially) yet. We don't know what their advertising will look like, and it well turn out that everyone who wants to play it will already have gone the PC route.
Makes me wonder if they actually took the backlash on Halo Infinite to heart.
Even if they did, it's after ignoring the same backlash about Halo 5.
They didn't ignore they backlash, they promised to "always" have split screen going forward.. Only to not even make that promise last a single game. Infinite didn't even have network coop at launch. At this point no one should trust anything 343 says. Their track record speaks for itself.