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My take on Microsoft is they never really got the hang of first-party game development. Their early offerings were iffy. They got lucky with some development studios they acquired, but never really did much internally. They appear now to do moneyhatting to get what they want, which is like having your own studio, but not really. They are now console focused for this, and back to their old model of making money off selling tools and being the tool booth that they get a cut of all action in an area. These are the facts:
1. PC gaming business has not been growing. It is subject to piracy. It is great to break into the business with, and get a start, but big production titles tend to be supported better by the console model.
2. Microsoft's main claim to fame are in areas that have been played out pretty much. How many more RTS titles are going to be able to be done on PCs and people buy them? You have Blizzard and EA covering that. Everything else has been done just about.
2a. Flight sims? How many more times can they do this?
2b. Mech simulators? How many more times for this also?
3. It is just easier for Microsoft to moneyhat IPs and let it be, and make their money taxing the console business, and making higher profit margins on business software.

Yes, it is a sad day here, but things move on. I personally would like to see a REAL Shadowrun RPG done. Not a FPS but a game that involves hacking, firearms and magic.