If they do that it will truly be the beginning of the end for Xbox. They can say goodbye to Scalebound, Recore, FFVX, KH3, Dark Souls and so on... But at this point I won't be surprised actually. 

They really wanted Kinect to take off.

The same thing could happend with hololense

(unless MS sees reason and uses the tech for what it seems ment for, the smart phones).

So new xbox next year ?

I don't think a retreat from Japan would mean the loss of those games. No japanese consumer buys those on XBox anyway, and westerners buy them on the platform they have. But there is a problem of image: Microsoft dismantling the XBox brand from one of the major regions would be a massive PR blow, and might cause a panic reaction on the West. I don't know if the losses they have over there are worth that panic attack, we'll have to see.

The entire Studios tab seems to have been removed at https://microsoftstudios.com/

Oh man, I got too many nonsense responses. I'll just respond in a nutshell.

I don't consider PS3/Vita remasters great first party support. PS4 1st party support has been weak thus far. Hopefully that changes this year.

Lionhead is gone because they haven't made a notable Fable game since 2010.

I have the beta for Fable Legends and its not very good. Fable Legends average and it was probably as complete as Street Fighter V. I'd rather see that game become a new IP or have its assets used for Fable 4.

“On Monday we announced changes to Microsoft Studios including Lionhead and Press Play,” a Microsoft representative told us via email. “As part of these changes, we did a site refresh and removed several logos for older studios and projects that have been consolidated during the past several years into other Microsoft Studios and teams. As games launch and new projects come online, we routinely make these kinds of moves to ensure we have the right development support on the right games.”

So I guess some of these studios merged with other studios?

http://www.gameinformer.com/b/news/archive/2016/03/08/a-microsoft-studios-website-cleanup-turned-into-unfounded-rumors-of-impending-layoffs.aspx

If it were a first party list then you shouldn't have listed things like Bloodborne, Ratchet and Clank, Until Dawn, LittleBigPlanet 3, etc etc. Can't blame him for loading his list with 2nd/3rd party games when he was replying to your list loaded with the same thing ;)

LBP is a first party IP.  Bloodborne was co dev by Sony japan.  Ratchet and Clank is a 1st party IP, but devs made sunset overdrive so yea I give you that.  Regardless the difference in volume is still there, and my point remains true.

That said, let it be known that I am sore about Lionhead being closed in particular.  This will leave me even more sour than usual toward MS for some time.

Isnt rare doing sea of theives?