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Crash Bandicoot 4, Spyro Reignited Trilogy Dev Toys For Bob Is Splitting From Activision
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I'm fairly sure Microsoft just saw that the studio had potential and didn't want them to be tied to ActiBlizz.
So move them anywhere else in the company, they owned them outright.
They let Bungie go as well. Maybe it was just a downsizing decision. Their roles were redundant or they didn't want to invest in whatever they were proposing. Idk.