Destin Legarie Podcast | Save State Plus

Xbox is facing another brutal wave of bad news. Reports say Compulsion Games, the studio behind South of Midnight and We Happy Few, could be shut down or is in negotiations with Microsoft over its future. At the same time, Xbox Game Studios boss Craig Duncan is stepping down after just over 18 months in the role.This comes after recent reports that Microsoft has considered major options for Xbox, including restructuring or even spinning off the gaming business. So what does this mean for Xbox Game Studios, future exclusives, and the long-term future of Xbox?

Diablo Immortal has always had one major criticism: pay-to-win. So when I had the chance to speak with Blizzard about the new Warlock class, I asked directly how the team thinks about PvP, monetization, and whether players can jump in without feeling instantly outmatched.
We also talked about the future of Diablo Immortal, what the game offers that Diablo 2, Diablo 3, and Diablo 4 don’t, and whether Diablo Immortal 2 could ever happen.

Satya Nadella’s latest comments about Xbox raise some serious questions about Microsoft’s gaming business. After reports that Microsoft has considered spinning Xbox into its own subsidiary, fast-tracking Fallout and Elder Scrolls, and resetting the business around sustainability, it feels like we may be watching a major turning point for Xbox.In this video, I break down what Nadella said, what the recent reports suggest, and why the Sony Interactive Entertainment restructuring from 2016 might be an interesting comparison point for where Xbox could go next.

A new report says Microsoft has not ruled out major options for Xbox, including restructuring the gaming unit, making it a wholly owned subsidiary, creating a joint venture, or potentially spinning it out in the future.The report also claims Microsoft leadership has approved a plan to spend more on major franchises like Halo, Fallout, and Elder Scrolls, as Xbox looks for a stronger path forward.So what would an Xbox spin-off actually mean, and how realistic is it?

This week on Game Chat, we break down our favorite games from Summer Game Fest 2026 and pick our personal Game of Show.

Before that, we run through some of the biggest news up top, including the major reveals, surprises, and trends coming out of SGF, PlayStation, Xbox, Nintendo, and the rest of a packed showcase week.

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Listen on Spotify https://t.co/T449YDTEX1

(00:00) I'm Sorry
(02:15) Xbox
(10:19) Destiny 2
(11:10) You Didn't See That
(17:30) SGF Impressions
(17:55) Tomb Raider
(20:53) Everquest Legends
(24:52) Aliens Fireteam Elite 2
(28:35) Control Resonant
(31:14) Games of the Show
(33:05) Sarth's GOTS Phantom Blade 0
(34:27) Destin's GOTS Blood Message
(37:02) Empulse Mention
(40:35) Valor Mortis Mention
(42:48) Turok Origins
(44:00) Upcoming Games We'll be Playing