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Adam540 said:
I remember reading somewhere that Microsoft had a first-party studio working on a game for their next system already. I think it was on Joystiq. My guess is that if true it would be Turn10 and they are working on Forza 3. The original xbox only had one Forza and with Forza 2 being bundled I don't think they need to make another one for the 360.

 I think they do need to, to keep the franchise vitalized. GT has been made in 2 installments on the PS brand, for instance. And like Stickball said; FM2 came out a lot earlier in the 360's life than FM did in the X-Box's life, so I see the need for releasing one more title to "keep the food warm" so to speak.