On the latest episode of the Bonus Round, Pachter mentioned that Microsoft told them their major focus is on new services and multimedia content as opposed to games.
(On visiting MS in a few weeks) Pachter: "They told me don't expect a lot of game stuff, expect a lot of dashboard, interface, multimedia."
http://www.gametrailers.com/episode/bonusround/604
http://www.neogaf.com/forum/showpost.php?p=37622905&postcount=1