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kitler53 said:

i don't see it, MS seems to have an aversion to having first party developers 

This is outdated thinking, Microsoft's actually spent the past 2 years growing their internal studios.  Turn 10 and RARE have both been bulking up significantly in terms of staff, and MGS has even opened 3 full new studios (Good Science Studio, 343 Industries, Firebird Studio), plus they recently just bout out another developer (BigPark).

The culling of 2007-2009 was mostly just restructuring anyway, and Microsoft's already made deals for new games with a lot of their old staff from those closed or released studios (Halo Reach with Bungie Software, Project Draco with Grounding Inc (ex-MGS Tokyo R&D), Microsoft Flight with ex-ACES staff, AOE Online with Robot Entertainment (ex-Ensemble Studios), MechWarrior with Smith & Tinker (ex-FASA Studio), etc).