Will Microsoft cease to have 1st party games? Another internal studio closed.

[theRepublic]

I see some arguements about games and profitability, so I suggest you take a look at this link.

It says that only 4% of games that start production actually make a profit.  It goes on to say that 20% of games that make it to market will make a profit.

That means that making games is a very risky business.  Add the fact that developing games is a long and expensive process, and I can see why Microsoft would be a little worried about owning developers right now.