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Impulsivity said:

   It's because MS keeps shedding game staff and development houses.  The lack of AAA games in the pipeline to announce is a direct result of that.  I mean now would be the time to buy up developers that are available on the cheap not shed staff and developers like the continually successful RTS team from Ensemble and the Flight Simulator guys.  All that seems to be left now is Bungee and Rare which, given Rare's not great post Nintendo track record, means they only have Bungee as a sole AAA developer.  They also have a few aliances with Epic, Valve and Lionshead but they're really cutting back hard on their first party footprint.

Last thing I remember, Bungie is gone.  They are no longer under the Microsoft banner.  Microsoft got Halo as an IP out of it, but they aren't under Microsoft.  Rare is, and I believe Lionshead is also.  You have the makers of Forza still with Microsoft and another studio.  Ensemble is also gone.