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S.T.A.G.E. said:

Microsofts situation/problem is creativity, not financials. It doesn't matter how much money Microsoft has, Microsoft has had to depend on third party because their first party lacking within two generations. Halo itself from its origin wasnt a first party game until Microsoft bought it. The best first party game Microsoft studios has created that stuck is probably Forza.

Microsoft isnt at their core about the gaming, they just want to own the living room (no problem with that, again to each their own) they want to have the ultimate entertainment center. If they need games they'll pay someone with creativity to do it. Sony was the first to introduce this concept but never put outside entertainment ahead of games. Microsofts success is due to Xbox Live and market saturation and Kinect Halo, Gears, and COD. Sony will be remembered this gen for being in third but ending the generation with the respect of gamers. As E3 has shown, Microsoft doesnt care about gamer respect, even though they wouldnt mind having it. All the money in the world and they think XBLA will save them. On the business end of things its smarter, but they've lost the respect they gained in 2005-2008 from a lot of gamers. Hell, even I am switching to PC next generation because of Microsoft.

Well let's be honest here, because of Valve ;)