breaking the bank eh....more money hatting them? or they gonna start with some 1st/2nd party stuff?

i think there gonna pull a SOny and talk about things 5 years in the future LOL ZING!

 Turn 10, Mistwalker, Rare, Lionhead.

Your right, pretty diversified, yet small 1st party team.

Oh yeah since they have soooo little first party studios. Ignoring this intentional logical mishap....

Expect even more First party games to show up now that they are got Ensemble, FASA, and other studios melded inside them. Microsoft 'appears' to be making an internal game studios, like SOE for Sony and the such. 

My top 10 surprise E3/ 2009 possible announcements:
1. MGS 5 will be XBox 360 timed exclusive. Bring on MGS 5 for XBox 360.
2. FFXIII Versus is going to go multi-platform.
3. Diablo 3 for X360
4. Star Craft 2 for X360
5. FFXIII will be launched in Japan and is on both X360 and PS3.
6. Gears of War 3 will launch in November 2010.
7. Halo 4 is announced.
8. Slimline XBox 360 for late 2009.
9. Alan Wake to release in early 2010.
10. GTA V revealed at E3 09'

I have a feeling they'll announce a slimline. It would be a fantastic sales booster.

Well, it's definietely not as big as it used to be, that's for sure. They gonna focus on 3rd party more, than ever before.

I'm sure they'll go "Hey! Huxley is finished! Remember Huxley?" And it'll have all their promised goodies like 5,000 population servers, 100v100 matches, big cities etc.

Smaller studios with unknown IPs would be more susceptible to Microsoft's money-hatting.  Although it is possible MS discovers a diamond in the rough, it is unlikely this type of announcement will upset any Sony fans.  If Microsoft had the ability to purchase exclusivity of major players you would have gotten more than a one week exclusive demo of RE5, and Tomb Raider dlc.  I think Microsoft as a whole has seen severe weaknesses in its core products.  I think that is why you are seeing them tighten the leash on the EDD.

My Predicts:

Halo 4

New Halo game (not FPS) - Peter Jackson project?

GTA5

At least one major PS3 exclusive going multiplat

Forza 3

New Molyneux game

Killer Instinct or Perfect Dark iteration + new ip from RARE and a new DS title.

And most of these titles except for the RARE/Molyneux ip will drop within 12 months time. Also, no Gears related stuff but maybe a hint that EPIC is working on a new MS published ip.