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The worst thing to happen to Microsoft first party studios was how well the 360 did vs the ps3.  They didn't seem concerned with nuturing their studios.

Consider the first party studos of Microsoft and Sony that were able to release a game to retail with a 70 Metacritic score or higher since 2011.

Sony:

  • Naughty Dog: (2) Uncharted 3, The Last of Us 
  • Santa Monica: (1) God of War: Ascension
  • San Diego: (4) MLB 11: The Show, MLB 12: The Show, MLB 13: The Show, MLB 14: The Show  - ModNation Racers: Road Trip (Low Metacritic)
  • Sucker Punch: (2) Infamous 2, Infamous Second Son
  • Bend Studio:  (1) Uncharted: Golden Abyss
  • Evolution Studios: (2) MotorStorm: Apocalypse, Driveclub - MotorStorm: RC (Digital only)
  • Guerrilla Games: (2) Killzone 3, Killzone Shadow Fall
  • Media Molecule: (2) LittleBigPlanet 2, Tearaway
  • Guerrilla Cambridge: (1) Killzone: Mercenary
  • London Studio:
  • Japan Studio: (2) Gravity Rush, Puppeteer - Knack(Low Metacritic)
  • Polyphony Digital: (1) Gran Turismo 6
Microsoft:
  • Turn 10: (2) Forza 4, Forza 5
  • 343: (1) Halo 4
  • Team Dakota - (1) Project Spark
  • Rare: (0) Kinect Sports: Season Two(Low Metacritic), Kinect Sports Rivals(Low Metacritic)
  • Lionhead: (0) Fable: The Journey(Low Metacritic), 
  • Blacktusk:
  • PressPlay: (0) Max: The Curse of Brotherhood(Download Only), Kalimba(Download Only)
  • Twisted Pixal: (1) The Gunstringer -Ms. Splosion Man(Download Only), LocoCycle(Low Metacritic, and Download Only)
  • Big Park: (0) Joy Ride Turbo(Low Metacritic, and Download Only)
  • Mojang:
  • Good Science:
  • Funtion Studios:
  • Np Studios:
  • Platform Next:
  • Sota:
  • Launchworks:
  • Soho Productions:
  • Decisive Games:
And unfortunately for Microsoft most of those studios without a release, are making small apps, hologames, or phone games.  Microsoft needs to take a page from Sony's book circa 2007, and either (A) beef up all of their smaller studios into AAA studios, or (B) aquire a bunch of their second party partners like Remedy Entertainment, Playground Games, or Cloudgine.