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In a surprise twist, it turns out that both Microsoft and Crytek are fighting to make the other company take the rights to Ryse.

Seriously, though, they both probably think that a sequel could do well if started from the ground up as a regular game instead of as a Kinect game. I'm guessing that Microsoft isn't willing to gamble on funding another game, however, without something substantial in return, like the rights to the IP.