Umm you're missing something...

Cough*

http://www.vgchartz.com/game/80977/the-last-of-us/

I don't know about MS, but i can say this for sony.

All sony studios kinda do their own thing. Dare i say they are very genre/niche specific. It makes zero sense having the best racing game franchise (GT) yet also having another studio that makes a game that would compete directly with the other studio. Everything in driveclub could have neatly fit into the "arcade mode" of GT.

Errrrrr...... who do you think greenlit the project?

And how exactly did sony lose? At least the game evolution made was released and has so far gathered sales of probbaly over 2.3M. Where is Fable?

Sony closed down Evolution because their games overlapped a lot with another huge studio they have.
It just wouldn't make sense to have another realistic racer like that.

lol

U comparing DC to Forza. So do not forget about Sony's Polyphony Digital and GT Sport, main rival to Forza Motorsport series. Maybe Evolution's problem was too slow development, a lot of delays to DC and anyway very limited game at release with low scores from critics and gamers. Yeah, through years it has become a good and quality exclusive game. Maybe Sony considered it was a too long and bad experience. So no more.

Anyway MS now have Minecraft license and Fable for future ideas. Sony have partnership with Kojima. Not bad for both.

I have trouble understanding it aswell.

Even if i understand they don't want any studios doing development hell and want them to be efficient. They should find a way of fixing that rather than just close them down. Heck, they can downsize and make them do bite sized projects if scale is an issue.
They can hire someone else to oversee the projects, etc.

It just seems like a waste to me.

They obviously didn't make money and they're corporations not benefactors. 

For Sony I would think it pretty obvious since the game launched to horrible press and had monstrous internet hate.  I'm not a racing genre fan so I don't know if the intense hatred was justified or not but it doesn't matter because the game had no chance of recovery or turning the hatred around no matter what they did.

 For MS the game obviously wasn't good and they cut their losses.  They also wiped 6 (I believe it was 6)other studios at the same time of the Lionhead announcement from their studios listing.  I think some were Kinect studios so obviously it's just another sign Kinect focus has shifted and one made project spark and that must not have caught on either. They said the studios closed were shifted into other studios.  

I find it more unusual people think companies aren't worried about profits just because it's a game studio. 

No I'm not. I said let's just compare one generation as that's the only way to compare sales. If you'd like me to count multi generational, I'd be happy to be able to count Twilight Princess on GC, Wii, as well as TPHD on Wii U all as one number.

1) You brought up the 360/ps3 generation by saying Halo 3 and TLOU. That is not my fault. If you wannt compare gen 6 or 5 or whatever gen, I'd be happy to, but you brought up that gen.

2) What on Earth makes you think people don't want 1st party Nintendo games now? Notice the 1st party game sales. Yes they are less than Wii but that is because a TON less Wii U's have sold and will sell compared to Wii. In fact, there were 7.8 x more Wii's sold than Wii U's (as of today) So you'd think that would mean that 1st party game sales would be 7.8x less using your logic right? Wii U top 8 sales are 35.02 million units sold makes it 7.6 x less. Which means that proportionally, the amount of people buying 1st party games per console has increased, slightly, by .2 times, hardly a decrease let alone fulfilling your opinion of "people don't want Nintendo 1st party games now (if they did they would have bought a Wii U)."

3) And you proved a massive point by showing how Nintendo still has the best selling exclusive this gen despite having a massive amount less hardware sold.

4) Playstation as hardware is incredibly strong, because 3rd parties made it. Their 1st software itself isn't that strong. And if the Wii had HD tech like the ps3, the gap would have been an insane amount larger than 20 mil. People wanted Wii's, but they also wanted high definition games (which the Wii couldn't provide) so a lot of people ended up with two devices. If people could have played hd multiplatform games from 3rd parties on the Wii a ton of them wouldn't have bought a ps3 I'm sure.