I have the idea that once Horizon became vastly more popular than Motorsport, the actual developers in T10 and PG are now split like this:
They have some units that work together in a way to make things quicker, like licensing, multiplayer and the car modeling and importing but most of things that tend at game direction and world bulding of the games are split between T10 and PG, also engine (Graphics+Physics) is made alone by T10 theyselfes in a second studio inside T10 that is made sorely to take care of the Forza Engine
That aside, the world bulding asides technical stuff like audio, gameplay, production, updates, so on and on is pretty much split, the horizon things goes to PG, the motorsport things goes to T10 (side note, PG has 2 teams that take care of horizon + the fable team, as far i know, one takes care of FH4 bugs and glitches, other take care of FH5 updates, eventually maybe the FH4 and part of FH5 team will be transfer for FH6 but i dont know if it happened or when it will happen).
The reason Forza Motorsport will have less tracks than FM7 isnt beacuse of cut of personal, besides licensing (since some tracks like Miami wont be beacuse the end of NASCAR license), is due the fact that the T10 world bulding team decided to focus in the weather and 24 hours cyclies, both are a HELL OF JOB, is not just, like, put day and night sky and call it a work done (it needs lighting configurations, changing of some objects, setuip that some objects be shining at night and normal at day, wet track and dry track and so on and on...) right now they are in process of updating all old tracks that they can use, into the updated engine and updated 24hour cycle and game objects, it takes time and by experience of mine with 3D modelling and modding game maps. it is very consuming.
This why also has only 5 new tracks, beacuse those tracks were used mostly to test and aprimorate the tools for this the new lifetime plataform (unlike older Motorsport, this game is made to be more like the new Flight Simulator, to live for 5/6 years with constantly updates, maybe until the end of this decade when the new gen takes over), Eagle Rock and Hakone (asides Hakone was made to probally replace Fujimi) were made to test the tools since some classic forza tracks will need be bulit from scrach, and Kyalami and the track that still be named probally are used to test the process of scan to track process, update things they had done from FM7 to the new systems and process
the only execption to this one is Mid Ohio that probally was due to be added in FM7 but since they decided to go for the new game, it stayed freezed until they had the updated tools ready, they only needed get the scanned stuff they already had moddelled and put into the new game.
As far i know there hasnt been cuts for T10, actually quite opposite with the success of Flight Sim and the expectations with long-term Forza Motorsport cycle
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Edit a few hours later
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Just saw this video, its a great video about the community, it has somethings i also talked on this forum a few months ago, it also talks about upcoming Forza a bit as well, i dont want spoil it much about what it talks about upcoming Forza but please watch it beacuse i feel its necessary to talk about it in relation with the new forza