Meghan Markle and Prince Harry: Inside the 'Dynamic That Works for Them' (Exclusive)

"Harry seems to be embracing this life he has with Meghan," a family insider tells PEOPLE

Despite challenges, Meghan Markle and Prince Harry are "really happy together" in California.

While the Duke and Duchess of Sussex have faced setbacks since stepping back from their royal roles and working to make a name in Hollywood, a family insider tells PEOPLE, "They seemed really happy together. Harry seems to be embracing this life he has with Meghan and knows it’s a very different one than he had before, of course."

"Meghan does seem to run the household and make the decisions, but it’s not that he bends for her. It’s just a dynamic that works for them, and maybe one that he needs after everything he’s been through," the insider adds.

Related: Meghan Markle and Prince Harry's Obstacles to Success in Hollywood: 'House with No Foundation' (Exclusive)

While Prince Harry and Meghan have been spotted both together and individually out at restaurants, on the beach or at local markets in Montecito, they mostly keep to themselves. They work out of a shared office inside their sprawling $14.65 million estate, which boasts chicken coops, a playground and a vegetable garden.

A friend tells PEOPLE, "They’re not into a big scene. They prefer smaller group hangouts at home, karaoke, that sort of thing."

The couple regularly gets pizza takeout from nearby Bettina (a favorite spot of celebrities like Ellen DeGeneres and Catherine Reitman), and the friend adds that Prince Harry is a "beer and steak-and-potatoes kind of dude."

It's been three years since Prince Harry, 38, and Meghan, who turns 42 on Friday, announced that they were stepping back from their roles as working members of the royal family and moved to her home state of California. The couple has stressed that the change was necessary for their mental well-being, but "there wasn’t necessarily a five-year plan" — as one royal insider tells PEOPLE — when they left the U.K.

Royal life "wasn’t a world they wanted for their family," says the royal insider, noting that their choices reflect that. "Everything else flows from that, for whatever time period it takes."

Meghan and Harry signed major deals with Netflix and Spotify in 2020, resulting in a record-breaking Netflix series and a hit podcast in addition to the Duke of Sussex's bestselling memoir. However, they announced in June they had "mutually agreed to part ways" with Spotify, where they were operating under a reported $20 million deal, and the Wall Street Journal recently declared the couple was "looking like a flop" after looking into their production company's Netflix output, where their deal is valued at $100 million.

Although Meghan rose to fame on Suits, starring on the show from 2011 to 2018 before marrying Prince Harry, a source says the couple "won’t listen to experienced experts" regarding their projects.

"Meghan's very smart, but she still only was involved in one very small slice of the industry being on Suits," adds a Hollywood insider.

Related: https://people.com/meghan-markle-prince-harry-playful-flirty-says-source-california-life-exclusive-7568169

Leading Archewell's production company, the couple has also experienced ongoing staff turnover. In a statement to The Wall Street Journal in June, a spokesperson said, “New companies often make changes in their start-up phase, both with people and strategy, and we are no exception.”

Senior media strategist Joe Quenqua tells PEOPLE that the latest hiccups signal "serious growing pains" for Prince Harry and Meghan's brand as they find their footing in show business, while a top Hollywood insider says, "The royal element and, in some ways, the drama around them inflated the price, deals and expectations."

Meghan's recent deal with power agency William Morris Endeavor should prove helpful. "They can actually put them in touch with actual filmmakers and creative people and producers and people who actually know how to make a TV show or a film," says the initial Hollywood insider.

Can't get enough of PEOPLE's Royals coverage? Sign up for our free Royals newsletter to get the latest updates on Kate Middleton, Meghan Markle and more!

At home, the Duke and Duchess of Sussex are focused on their two children: Prince Archie and Princess Lilibet. They "are very united when it comes to family values and how to raise their kids. They are both great parents," the source adds. "Their kids are their world."

The couple's “goal,” says a source, is for Prince Archie, 4, and Princess Lili, 2, to "have a normal life as much as possible."

The source adds that Archie and Lili have playdates as well as spend time with their parents at the beach or on walks.

The children's upbringing is "very play-based. They have several play areas, including a climbing gym on their property."

For more People news, make sure to sign up for our newsletter!

Read the original article on People.