http://www.pocketgamer.biz/r/PG.Biz/Windows+Phone+7/news.asp?c=22791
All console makers have inhouse development teams, but smartphone makers tend to leave it to thirdparties.
Microsoft is keen to ensure Windows Phone 7 gets off to a great start however; hence the new that it's set up its own mobile development studio.
Mobile Microsoft
The news was delivered via a job posting on the giant's website, the blurb for the position of lead service software development engineer at its Redmond HQ confirming Microsoft's intention to work on its own games for the platform.
"Microsoft Games Studios is establishing a new Studio - MGS Mobile Gaming - focused on bringing games and entertainment to the mobile life that people lead," the company says in the posting.
"Our vision is to deliver games and entertainment so good that people will want them always with them, on a service that makes them social, connected and relevant anywhere their life goes."
Should help ensure there are some top notch titles to be released for mobile platforms. Bear in mind that the quotes do not say anything about WP7, but we can assume that will be a priority target.