WildTangent boss Alex St John, speaking to GI, has claimed that Microsoft is backing down from first-party development as part of a "recovery phase" and a bid to make its games business profitable.
"You will clearly see Sony and Microsoft ramping down their investment in those platforms... What's interesting to note is that Microsoft [Game] Studios: the number of titles they're producing is in decline. So they're investing a lot less in the Xbox, and Sony is doing the same, because they're in a cost recovery phase," he said.
St John's comments come in the wake of the shock closure of Ensemble Studios overnight.
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