As a 360 fan, I am not at all worried about the current state of Microsoft Games Studios as you put it. If you want to compare the top MS vs Sony developed or published games, you are comparing Halo 3, Gears, Forza 2, Mass Effect vs Motorstorm, Resistance, Uncharted, Gran Turismo Prologue.
And with that, MS wins on both sales, popularity and critical acclaim. Since I havent played those Sony games, this is the neutral way we can compare them and lets not kid around, on neutral scales, MS made better games that sold more. Why would I be worried or doubt they will come up with the goods again? Arguably, the fastest selling exclusive game for PS3 this gen so far is MGS4 which is third party so theres still alot to prove. The question is whether LBP can hit the lofty levels that Sony wants and that is yet to be seen.
Rare/Lionhead/Turn 10 and the internal MGS studio has very big projects upcoming and I still say Mass Effect 2 will most likely be exclusive.
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