MS has only recently realized that in-house game development is strategically important, which is why you see all those new startup studios, with no titles (yet), under their 1st party wing. They thought they could get by with timed exclusives for some time.
At MS, the games division used to be a joke -- where the dregs of the software developers worked at MS. They assigned management personnel from MS Office, Windows Plus, etc. to work there, and it was awful -- no creativity, all their time wasted in meetings and BS.
They only recently smartened up. The studios they formed are all outside of the MS campus -- not too far away, but not directly connected... for a reason.







