I've said it before, recently in my own thread about this subject (Will Microsoft fix Indie problems before Next Gen?), but Microsoft has to address this. Right now, it's looking like they're on course to take a tumble based on their own arrogance, just as Sony and Nintendo have before them. The odd part is that both Sony and Nintendo were coming off periods where they dominated the home console landscape, while Microsoft is following a generation where the 360 had the worst sales rate of the lot. I don't think their over-confidence is even justified.
Seriously, though, I have to believe that Microsoft is working on this problem. They have to be, I can't believe they'd neglect something so obvious. Still, even if they plan to improve the process with the 720, damage is being done right now. Sony and Nintendo have stolen the march and have indie developers drifting in their direction.
I don't think this will translate to a ton of true exclusives, but I do think we're going to see PSN get a lot of games before XBLA does, simply because developers are going to code versions for the platform they feel respects them more before they start on other versions. It might very well be a reversal of the early part of this gen, when Sony was getting everything months behind Microsoft.
This won't kill the 720, obviously, anymore than it did the PS3, but it's an issue that Microsoft should work to fix as soon as possible or the bad press will just keep mounting.
