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Squilliam said:
So it seems they are in the process of expanding like a lot of people condemned them for not doing. I guess they never announced what they were doing so people interpretted that as doing nothing.

The real question is what they are going to do after 2010, what focus will they have? In any case I suspect we might have 2-4 games announced from first party studios this coming E3.

I was reading on neoGaf how MS finally learned that buying studios was not the best due to a lot of the big talent leaving whenever they make the aquisition and it is no longer the same.  So that is why they are now building up their own studios.