Why don't Microsoft's 1st party studios make new games?

[Animal House]

M$ also has Crackdown which i will cop a X1 for

 

[MeachTheMonster]

Save Point: How Microsoft plans to make the Xbox great again

Not every game made by Microsoft is made by Microsoft. Instead of producing games entirely in-house (see Nintendo’s Super Mario Bros.) or banking on third-party providers (like Activision’s Call of Duty), Microsoft often relies on what some have come to call "second-party" partnerships — deep collaborations between console makers and outside studios. It’s a win-win relationship: Microsoft Studios taps ready-made, talented teams of developers, and developers get financing, marketing, and support from Microsoft’s internal team of producers and engineers.

The approach has proved remarkably successful: Dance Central; State of Decay; and Gears of War, one of Xbox’s biggest franchises, began as second-party games. Both parties walk away with big credits under their belt and bags of cash in their bank accounts.

 

[Fatboi1]

Like 2 of those studios are worth a damn

But pretty sure Phil Spencer already said they need to diversify their library. Who cares if its 3rd party or not, you're never going to play Scalebound unless you cop an Xbox

@MeachTheMonster does.
and what does the last point have to do with anything?? You're never going to play Nier:AutoMata or Bloodborne unless you cop a PS4...

 

[BaldingSoHard]

I don't think MS is all that heavily invested in gaming, tbh.
Their bread and butter is embedded operating systems and enterprise software.
Xbox is just a hobby for them.