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Xbox Boss Phil Spencer Addresses Studio Closures
(www.ign.com)
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So from what I gather, most of these studios were doing fine before they were bought out and now they are all starting over from scratch cause any proprietary stuff they had is owned by Microsoft.
Some of them were still doing fine, just not triple the profits well.
In the end their name, their achievements and their reputation has been transferred, and nothing else. I feel they (the studios' teams) have been made use of to then deceive people who trust the names.