As the release of Mass Effect 2 approaches, the fervor over the exclusivity to the game to the 360, wrt to consoles is once again heating up, and to be perfectly honest, I think M$ has to bear the brunt of it.  Well, to be specific, I’d have to say Microsoft Game Studios deserves to bear the brunt, as they have been a waste of money, imho.  The current first party/exclusive content issue should really be a serious non-issue, because M$ owns a TON of top quality IP that could very easy be churned into games, except for the fact that MGS lacks vision, mission, and execution of a comprehensive strategy to capitalize on a wealth of IPs.  Let’s look at quick list of Grade-A IPs that MGS could be churning into games for the 360:

Brute Force – Considering how crazy Xbox owners about shooter…can somebody PLEASE tell me why this IP doesn’t have a game for the 360…and we are in year 5 of the 360’s lifecycle?  The original game was fun, and it sold well.  It seems that M$ could have hire Gearbox or somebody to develop a game for 360 with this IP.

Freelancer and Starlancer – Basically, I have no idea why there is not a hybrid Space combat/RPG/trading game based on the IP.  Why, at the very least, there’s not a XBL space simulator for the Starlancer portion of the game.

Killer Instinct – Fighting games don’t have as much punch and appeal as they once did, but I’m certain that a Killer Instinct game for the 360 would get well over 1 million units sold, if not 2 million.

MechWarrior – How in the WORLD is there no game already out for this IP?  Sure, we saw that clip last year for a game in the works…but why isn’t it confirmed for 2010 already?  Not only that, but MechWarrior is quite possibly one of the best IPs for a MMO I’ve ever seen.

Shadow Run – A top flight RPG IP, and we got that crappy game some years back?!?!   So, why don’t they get a FP/3^rd person game, ala Fallout 3 or Oblivion, for this content? 

So , the issue here is clearly NOT a lack of compelling and deep IPs for M$ to exploit in producing Triple-A exclusive, but instead a lack of vision and execution to deliver on these results.  I’m not sure what the staffing levels are for MGS, but whatever it is…they are in dire need of help, and they in a serious crisis of lacking leadership.  To have these many potential, and have to deliver ZERO on them in so many years is really a joke.

Shadow Run is an amazing game i dont see how you think it is a bad game

Microsoft sees a different role for themselves in games than the other two. Nintendo relies solely on game revenues to survive so they dominate their platform. Sony also relies heavily on game revenue to show profit in the space so they tend to dominate.

Microsoft sees their role as a platform provider and a game profiter second. So, they focus on providing the platform more then pumping out IPs. If you look closely at their new releases it is clear that Microsoft is relying heavily on 3rd parties to develop software and they see their role in building games as one that puts features in games to sell the platform.

As for IPs you mentioned... The former FASA IPs are licensed by the former founder of FASA and MechWarrior has a new game on the way. It was announced last summer.

MGS is the best there is!

Also Killer Instinct has been hinted at in a lot of Rare stuff over the last couple years. (Christmas card to the press in 2008, and in the Banjo Kazooie N&B game). Killer Instinct seems to be a perfect natal IP.

The game lacked depth and failed to fully exploit the IP, imho, and it would seem, quite alot of other people, since the game didn't exactly shake the world.

@ NeoRatt

I saw the Mechwarrior clip for the project in the works...but we are 5 years into the 360's lifecycle...and chances are, this game isn't going to be launch until 6 years into it...SIX FRIGGING YEARS, for a game IP that had 2 of the most successful title on the last console.  As for Killer Instinct, we will have to see...maybe it's a good Natal title, but remember how M$ said they were going to be more forthcoming with information on titles in the works?

Mechwarrior is in the works... but yeah I don't get why these series lag....

Who's for a natal controled RTS game? (that would be sweet)

I'm not sure I'm understanding your point... Microsoft, Sony and Nintendo all make money from 3rd party games, via licensing fees.

The differences seem to be that Nintendo makes money from hardware, and Microsoft makes money from Xbox Live subscriptions. Other than that they're pretty much the same.

well microsoft at the middle of this race decided to kick all their studios.
with the focus on natal, don't expect many first party games from them.

epic being third party and bungie free, and bioware part of EA, many of the games will end up multiplatform.

Why do you need an internal studio to make games?  What's wrong with working with a third party to get your IP made?