One of the biggest problems with the Xbox One, is its lackluster First party lineup. Compared to Sony Interactive and Nintendo, Microsoft's Xbox Game Studios (Formerly Microsoft Studios) has put out very few compelling games this generation for Xbox One and Windows 10. Sure, there were a few gems like Sunset Overdrive and Ori and the Blind Forest, but by and large, Microsoft's output this generation has been underwhelming, with constant first party software droughts each year. Microsoft feels the same thing, which is why they went on a massive shopping spree to beef up Xbox's First party network. Acquisitions of companies like Obsidian, Ninja Theory, and even Double Fine Productions. But simply buying a bunch of studios doesn't mean anything if they aren't being put to use. How do you think Microsoft should go about First party game development in the future going into Scarlett? They can fix their first party woes in a few easy steps.
1. Get away from the Halo/Gears/Forza reliance - Seriously, by this point it feels like these three properties are all we ever see from Xbox Studios these days. Have these IPs continue sure, but don't act like they're the only ones you have.
2. Variety is the spice of life - Take a page from Nintendo in this regard. Nintendo publishes a lot of different genres each year. Fighting games, Platformers, RPGs, Action games, Multiplayer games, and really experimental shit. Complain about them not getting AAA games out regularly all you want, they at least know how to offer a diverse content lineup. Microsoft needs to do the same. Let your studios experiment, allow them to do a variety of genres, and don't just stick to one genre, art style, or gameplay type exclusively.
3. Also encourage AAA quality - Obviously you can't make every game a blockbuster, but if one of your developers wants to make a top-teir AAA, high budget title, then give them the budget to do so. This is where you should also take a page from Sony, who gives their teams as much time and money needed to make really ambitious titles. Right now Xbox has a reputation for lacking in AAA exclusives, so if one of your developers want to make something of that caliber, then let them do it.
4. Keep them Xbox exclusive - If you want people to also play their Xbox Studios games on Windows PCs, fine, but don't negate that by distributing them on platforms like Steam or Epic Games. Keep them locked to the Xbox PC and Console Platform. If it's a first party game, then I should only be able to access it from either an Xbox console, xCloud, or the Xbox Launcher on PC. I get what Microsoft is doing with their initiative, they want Xbox to be on any screen imaginable, and that's a fine ambition, but make sure your games are locked strictly to the Xbox ecosystem.
These are all that Microsoft needs to give Xbox Scarlett a healthy first party lineup. I think they have the right tools needed so far, now they just need to follow through.