Yeah, they were, as were the gaming industry at large, and probably MS too
MS should focus on internal development though. Especially as the PS3 userbase rises closer and closer, multi-plats may wind up doing better on the sony console *cough* DMC4 *cough* and not make it worth Microsoft's while. We've all conceded that FFXIII PS3 > FFXIII 360 in sales, so I'm not too sure what it helped MS to do that for.