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Sad story. If I have understood right, most of these studios were working with Kinetic games, and as the Microsoft Kinetic strategy appears to be a failure, the games and studios are no longer needed. Where I live, folks say "If the brain is not working, the whole body suffers". Many PS Vita studios had similar fate when Sony put the focus only to Japan for the Vita. I am sure there is plenty of talent in these studios so I hope the people find quicky new projects to work on.