I like the direction of less internal studios. To me gaming is about constant innovation. It is difficult to make the modern AAA games, and the type of people required are entrepeneurs, not usually long term employees. If I look at Nintendo there are a few good internal studios working on Mario and Zelda. Over at Sony, I haven't seen much first party stuff worth talking about this generation yet. First party studios seem to work best at arms length like Insomniac with R&C / Resistance, Bungie with Halo, Turn 10 with Racing games, Epic with Gears, hopefully Remedy for Alan Wake, etc.
Also, keeping even first party studios at arms length encourages, third party studios. You get the feeling that if you have a good idea and you bring it to MS they might publish it as a first party title, then you could have the interntion to move on to Activision Blizzard, or EA afterwards for the big cross platform bucks. But, MS ends up getting the first two or three titles in an IP which are usually the best ones.
That said, I also like the building of their new studio for Halo. When you have a really good system selling IP like Halo is, it makes sense to have an internal studio to execute and expand the universe.
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