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MS first party game production is already weak compared to Sony and Nindendo, and they're shrinking 1st party development - so it can only mean that 1st party studios cost too much money and don't bring any profit.

And that must mean that Sony is losing tons of money making all their big IPs now that they're just a 60 million consoles maker instead of a 120 million console maker (because a halved install base must be reflected in game sales).

I wonder how long Sony can keep his over-sized 1st party development at this size with so many big budget IPs they have.