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"The headcount reduction purportedly comes after Codename: Kingdoms publisher Microsoft Game Studios made a "sudden decision" to have Crytek move the development of the game from Budapest to Crytek's Frankfurt studio." 

This sounds like Microsoft owns Crytek's ass.

Also if people are getting fired the project at this point must be a mess, though a messy game would be perfect for Kinect, so this sounds weird.