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Considering they apparently couldn't find a way to repurpose the studios to create relevant content for the Xbox brand today, I kind of question the strategy here. Limiting your number of viable first party studios to such a significant degree because you weren't ready to take a gamble on seeing what they could do under different parameters is a bit silly. Yeah, it costs money, but nothing was stopping them from setting the studios on small, slowly escalating projects as they created more content exclusive to the Xbox brand.