NeoRatt on 07 March 2009
Not having owned first party studios gives them flexibility. If you own it and you are large like Microsoft is then you end up keeping a large amount of deadwood in the company as studio staff get more and more complacent over time.
By "outsourcing" first party games Microsoft is able to pick and choose the best ideas and companies to execute on their plans. IT may look more expensive and it does have some risk, but first and foremost it gives them extra flexibility to drop and add studios as they see fit.
