I think microsoft are starting to coast through this generation. They've sold more units than last gen, so they're happy, their console has beat out Sony - probably what they consider their biggest competitor - and they've made a decent bundle off Halo 3, their lottery ticket that always wins. Plus, they've found a little brother for Halo in the form of Gears of War, which has also done pretty well for itself in raking in the sales.
In fact, it would appear that they've settled into a strategy of releasing Gears of War and Halo games in cycles. Getting bored of Gears of War 2? Dont worry, Halo Reach is out next year. When you're done with that, Gears of War 3 will probably be around the corner.
And for me, that just doesn't cut it. They've been blessed with the best third party support you can ask for, but it always sucks to see the company which MAKES your system pull back and offer limited support in the form of their own games. Having sold off most of their third party studios, they're at least honest in admitting that they pretty much have no interest in making first party titles. Instead, their business model seems to be second party games made by other developers under the microsoft umbrella, or securing exclusivity for the PC and 360 from third party developers like EPIC.
Which basically means Gears of War, Forza and Halo - right? That and a RARE game released every 10 years only to score 'good but not great' reviews. That just isn't enough. They need new IPs, new ideas, new games. I'm not a big Gears fan, though Halo is amazing, but it only comes about once every two or three years. There's no steady supply of new, interesting games coming out of Microsoft's studios, which is sad for a company supposedly passionate about gaming.
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