Lyric discussion by shnoogums 

Cover art for Cutsman lyrics by Horse the Band

I think this song is about being associated with a sociopath or narcissist. Cutsman is a metaphor for a bully or someone who gains pleasure at others expense. That's what the "cutting" is and why he has no soul or heart. It could just be about the video game, but birdo certainly has a deeper meaning, and at first glance, it also appears to just be about a video game.

My Interpretation