He's saying Sony owns the right to the Insomiac exclusive IP's they have. Microsoft only has publishing rights with Gears, but doesn't own the IP. Same story with Mass Effect and how they lost the exclusivity of the IP as it's multiplatform now. Microsoft publishes iterations from third parties of their franchises rather than buying the IP outright. 

BINGO...M$ made a strategic decision...maybe as a way to incentive the developer, maybe as a hedge on the cost of buying the IP, or maybe as a way they just weren't given the option by Epic, regardless of the issue, the fact is that THIS model used by Microsoft is what is now the industry practice, and more and more creative and forward leaning developers are seeing this as the far more beneficial way ahead, rather than working for the console maker.  It's all about how and what a console maker/publisher is willing to offer to lower risk and incentivize a developer to do.  Basically, exclusivity isn't dead, just modified...at anytime, Epic can take Gears multi-platform, but M$ INCENTIVIZES them not to, and THIS is how it should be, imho.  I think having 1st party titles is important, but ME2 is one of the best games I've played this generation (or any generation for that matter)...flat out...so evidently, multi-platform CAN be done correctly, and it's a matter of having a developer who is creative and dedicated to what they are doing.  On the other hand, look at the garbage in the way of exclusive content M$ paid for to get Japanese developers to work on content?  Computer gaming is great, but most developers are moving away from it, simply as a matter of economics, or at least diversifying their release breadth.  Looking at this generation, I think the early cost to develop titles were cost-prohibitive, but I’m certain they are drastically reduced at this point, regardless of what publisher will say…as for the future, I think the next gen of consoles will have to push to keep development cost flat…PC games haven’t had a problem with this, so it’s VERY feasible for consoles..imho.  Sorry for the longwinded reply that will probably not even get read…. 

BINGO...M$ made a strategic decision...maybe as a way to incentive the developer, maybe as a hedge on the cost of buying the IP, or maybe as a way they just weren't given the option by Epic, regardless of the issue, the fact is that THIS model used by Microsoft is what is now the industry practice, and more and more creative and forward leaning developers are seeing this as the far more beneficial way ahead, rather than working for the console maker.  It's all about how and what a console maker/publisher is willing to offer to lower risk and incentivize a developer to do.  Basically, exclusivity isn't dead, just modified...at anytime, Epic can take Gears multi-platform, but M$ INCENTIVIZES them not to, and THIS is how it should be, imho.  I think having 1st party titles is important, but ME2 is one of the best games I've played this generation (or any generation for that matter)...flat out...so evidently, multi-platform CAN be done correctly, and it's a matter of having a developer who is creative and dedicated to what they are doing.  On the other hand, look at the garbage in the way of exclusive content M$ paid for to get Japanese developers to work on content?  Computer gaming is great, but most developers are moving away from it, simply as a matter of economics, or at least diversifying their release breadth.  Looking at this generation, I think the early cost to develop titles were cost-prohibitive, but I’m certain they are drastically reduced at this point, regardless of what publisher will say…as for the future, I think the next gen of consoles will have to push to keep development cost flat…PC games haven’t had a problem with this, so it’s VERY feasible for consoles..imho.  Sorry for the longwinded reply that will probably not even get read…. 

With a game like Gears any publisher would be stupid not to purchase the IP. Then again...if Microsoft had the IP, they would kill off the franchise like they are slowly killing off Halo. Mass Effect is a testament to this. Your statement is also a testament to Microsofts horrible quality control in dealing with their own exclusives.

Yeah....Halo Reach is a complete failure...do you realize how stupid that sounds?...probably not...