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Reasonable said:

Playing the 'what if...' game, if I was MS I'd:

1 - focus on Natal launch and making sure it is well supported with titles

2 - use Reach/Gears 3 to keep the hardcore happy into mid 2011

3 - back a few exclusives like Alan Wake

4 - use the back end of the generation to build up more 1st party capability to support the next Xbox

 

After this gen most third parties are probably going to assume a split market again, and accept supporting multiple consoles much earlier in the gen - and current trends clearly show that relying too much on third parties only seems to last so far into a consoles lifecycle if the competition keep up with you (which has been the case).

1. Done.

2. Almost done.

3. Happening right now.

4. Happening right now.

They will probably pick up another 2-3 studios on top of their present expansion of Rare, Turn 10 and Lionhead (into more than just a racing studio) however I suspect their growth will come more from internal expansion rather than external aquisitions and like 343 they will simply create new studios where there were none before.



Tease.