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I'm pretty sure if MS won the "console cycles" and had no one to touch them...they would close down everything except maybe 343 and Black Tusk... whatever they are called now. They don't want lots of studios, they want to own IP's and buy exclusives. They didn't just close Lionhead either, they shut down Project Spark, put Phantom Dust on hiatus and closed the studio Press Play.

They don't own playground games and many of the other kinect studios were transferred to other parts of MS.