E3 is going to be important for Microsoft. All those studios of theirs need to come through in a big way. It will be kind of a rough patch until then, but they probably really need to "win" E3 or this year will belong to the PS4.
I actually have a fair amount of faith in Spencer. I think he's probably got some significant surprises lined up. They won't spare any expense on the next Gears game, I know that, but it's likely still quite a long ways from release. Wonder if they'll drop any information about that. I'm not usually a fan of announcing something that is more than a year distant but Microsoft definitely needs to create some buzz one way or another.