The official Alan Wake forum has just posted an announcement in response to the rumor that Alan Wake is the "big Microsoft first party title" that is getting canceled.
"Microsoft Game Studios does not own the copyright nor the IP to Alan Wake. Therefore, Alan Wake is NOT a first party title for Microsoft."
The forum moderator adds:
"Remedy is acting as a third party developer for Microsoft Game Studios. MGS provides outsourcing and development resources for the game, but has no development power over the title."
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