[Stephen Carter]

It has been reported that Microsoft have closed one of its studios this morning, the studio in question been a Vancouver based Kinect developer.

The games industry has taken a big hit recently as this is the third studio to close or lose staff in the area. Capcom and Rockstar both reduced their numbers in the area earlier this month and it seems Microsoft are following the trend on.

The studio was working on a Kinect shooter and as a result of the closure two projects have been cancelled. Whilst the studio will not be shut down entirely, the majority of its staff are being moved elsewhere.

Our sympathies go to all those affected in the matter.