How was this surprising? MS has completely abandoned the origioanal Xbox fanbase that made the system great, they dumped them for the Kinect soccer moms. The bad thing is though, is that MS doesn't have very many 1st party studios, so if they are making a new next genXbox and people are betting on having all these new exclusive games for it, they are going to be dissapointed.
MS has a total of about 6 main 1st party devs, and two of them are jokes because MS won't use them (Rare and Alan Wake team), the onlyones left are Halo 343 studios (bungie is multiplat now), new Dev team for Gears (Epic is also multiplat now), Forza team, and Fable which is also going to Kinect.That's all they have, so unless they have beengetting new devs in secret, next gen won't be any different from what we are having now.
I expect the next Xbox to be only slightly more powerful then systems now (I don't expect a huge jump in power like last gen to this gen with anyone though) and they will focus mostly with Kinect 2.0 and making that more integrated, along withthe occasional Halo game they will milk every year. This is all just speculation of course, but if you look at what their strategy is, this is the direction that makes the most sense for them.
It's not right to abandone your main audience like that, I know alot of Xbox gamers are just ditching the platform and going to PS3 and PC now because of the way MS has screwed them.
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