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hmmm I had done researches a while ago on the bungie MS tides after separation... I do not have any links to prove what I will say.... but of what I understood back then... MS does have the first right on publication.... the thing is.... bungie doesn't have to develop on 360.... which means they could be working for any platform if they want to... up to MS then to distribute or not.... that's what I got out of what I read... and the 1up article doesn't really disclaim that....

now about 1st and second party.... I think what we are missing here is that MS invested tons of money on 3rd party... focussing on developing long term relationships with them... that might explain the small amount of in house development... my guess is you might actually start to see those studio start producing exclusive IPs in the near future.... 2009 might be there for that.. who knows???