Despite the plethora of Sony fanboy's here that severely need my particular brand of ownage, I'd actually like to respond to the OP for a change.
I believe the Microsoft, and eventually all gaming studios, are gonna move away from releasing the occasional game, and instead focus on less games with more hype and selling power behind them.
These tent-pole titles, as they're known in the movie industry, will do far more for the success of the console, than an above average game once a year will. This is the same strategy Sony has incorporated, as you can see they've been touting their tent-pole titles since the console's launch, but we've actually yet to see one(with the exception of the 3rd party MGS4, and the Gran Turismo demo, neither of which quality as a significant showing on the part of Sony). This proves that people will buy a console on hype and 3rd party support, if nothing else. The promise of a tent-pole title is far greater than the reality of an above average first party game.
The cutting of Ensemble is indicative of this. They aren't exactly a tent-pole developer. They're a secondary development unit. They aren't high profile enough to garner any name recognition, nor have they developed anything significant to pad their resume and qualify them as a company worthy of dumping tens of millions of dollars in on a tent-pole bet, as far as I know.
So yeah, there that is.
I don't need your console war.
It feeds the rich while it buries the poor.
You're power hungry, spinnin' stories, and bein' graphics whores.
I don't need your console war.
NO NO, NO NO NO.