I persnally think it is so if they do drop out of the console business they can do it more easily with less profit loss to the company.

Rare actually has 3 studios now...one just opened up.

They have a 3rd one? I know they have one in Twycross and Birmingham*. Didn't know about the third.

*is the one that just opened.

That's pretty much the strategy.

Plus, if the game turns out to be a stinker, Microsoft can cut the studio loose and only be out a few million dollars in subsidies, rather than the entire cost of publishing the game and owning the studio.

It allows for a lot of agility while mitigating risks.

Damn your right...why did I think there were 3 of them?

MS has only recently realized that in-house game development is strategically important, which is why you see all those new startup studios, with no titles (yet), under their 1st party wing.  They thought they could get by with timed exclusives for some time.

At MS, the games division used to be a joke -- where the dregs of the software developers worked at MS.  They assigned management personnel from MS Office, Windows Plus, etc. to work there, and it was awful -- no creativity, all their time wasted in meetings and BS.

They only recently smartened up.  The studios they formed are all outside of the MS campus -- not too far away, but not directly connected... for a reason.

can you imagine how much it would be to build a game up and if it fails then its even more money down the drain. MS is clever in this regard, plus there is not a lot of companies that is brave enough to stand up to MS and say, you know that game we promised you... yeah we are taking it to Sony... yeah not going to happen.

What I'm confused about is, they have such a strong relationship to epic (bordering on the bungie relationship) why dont MS get them... or are they freightened about the UNREAL ENGINE then not being used as much? It would be an incredible engine to own...

But as others have said Rare, Lionhead, Firebird, Big Park Studios, i think they are called, none the less. Ms is one of the most secretive companies out, when they want you to hear about them you will. Also look what turn 10's new forza is gonna look like, its puuuurrrrrddddyyyy :)

Plus Epic making gears

Bioware making Mass Effect

Crytek making codename: kingdoms (yes i know we havent seen it but its exciting me having another company jump on board this little exclusive train)

Splinter Cell makers, making splinter cell -.-

and Remedy making Alan Wake and friends....

She'll be right mate :) but thanks for thinking of the 360 :) she appreciates it

Spawnpoint has now changed their name to Good Science Studio btw.  They also have Xbox Live Productions, but Wingnut Interactive is dead afaik and Firebird Studio just does support work for other divisions I think. Specific games we know of coming from each...

Lionhead Studios

• Fable III (2010)
• Milo & Kate (tba)

RARE

• Kinect Sports (2010)
• Kameo 2 (tba)

Firebird studio is purely technical... though I think it's a bit more than support... they're probably working on several optimization issues with engines... maybe even heavy modifications... it would be nice to see some insight into what they are doing

I agree,

OT: I dunno why Microsoft don't invest in their own studios, they're stupid not to and it'll come back and bite them in the bum one day.