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The Fury said:

MS seem to have done the opposite. The could have acquired Bioware but didn't and Bungie have now left. They have disbanded 5 or 6 studios over the last few years.

I still think MS really, really missed out this gen with the acquisitions.  Imagine if they had bought Bioware, Bizarre Creations and/or Harmonix.  They have grown some new studios with some good talent (343 Industries, Good Science, Rare's new Fazeley Studio, etc) but after all the closures and layoffs they've done this gen (Ensemble, FASA, ACES, etc) I don't think it even begins to balance out.

Sony has grown enormously this gen though, and even Nintendo's expanded quite a bit internally.  Microsoft just seem to putting their dollars.. elsewhere. :/