Not really. They are setting up to have both quantity and quality. They have fourteen 1st party studios currently, and based on job listings and rumors they have about 22 individual teams within those 14 studios, with rumored plans for each team to release a game every 3 years or so, that gives them the quantity they need to keep Gamepass fresh with about 6 or 7 first party games per year (plus 2nd party games through Xbox Game Studios publishing). And MS is considering more 1st party acquisitions still.
But that focus on quantity does not mean that quality is a concern, they have 12 or 13 teams out of those 22 who are believed to be developing large AA or AAA titles currently based on job listings, and the rumored 3 year dev cycle per team should give the developers ample time to polish their releases, and I'm sure that MS will let some teams have more than 3 years if they need it (Halo Infinite will have over 4 years of development by the time it releases for instance). They have several already established AAA studios, 343 (Halo), The Coalition (Gears), Turn 10 (Forza Motorsport), Playground Games (Forza Horizon), with 2 more (Playground RPG studio and The Initiative) being built currently with top-notch AAA talent who previously worked at studios like Rockstar, Sony Santa Monica, Naughty Dog, Guerilla Games, Bioware, Rocksteady, and Crystal Dynamics, among others. The rest of those 12 or 13 teams seem to be making games that could be classified as large AA or small AAA, Obsidian's largest team is said to be working on a AAA 3D Pillars of Eternity that plays like Skyrim and there 2nd largest team is believed to be working on a large AA sequel to The Outer Worlds. inXile has job listing for a AAA 3D RPG built on Unreal 4. Ninja Theory's largest team is developing Hellblade 2, which could be classified as a small AAA, with smaller teams working on their Project Mara psychological horror games. Compulsion is expanding and seems set to do a large AA game next. Undead Labs is expanding and are believed to be working on a AAA State of Decay 3. World's Edge is working on reviving Age of Empires, which could be classified as small AAA. Rare seems to have a pretty big team working on Everwild, which could be classified as large AA or small AAA, plus a 2nd team who is still updating Sea of Thieves, that 2nd team will eventually move on to a new project most likely unless MS plans to update Sea of Thieves for Xbox Series and keep supporting it into next gen.Last edited by shikamaru317 - on 07 April 2020