It's not the 90s/00s any more. Noone funds sequels to new IP flops.. Games cost way too much to make to do that now Hell, Mass effect might not get another entry because one game didn't do so well and that was an established IP.
Would you really want an internal studio to make something like SO? Studios have their own niches, a game as good as SO can only be done by certain studios/groups of people and Insomniac is the best developer for a Sunset type game. I would rather Insomniac make Sunset than give it off to some random group of developers who may end up botching it up.
Source on Insomniac wanting to team up with MS during 360 days? it's clear they prefer Sony and will side with Sony whenever they can. MS was lucky they even got them for SO in the first place.. so I don't think it's as simple as "they could if they wanted to"
I'm not arguing this at all, I do think they have too much influence but you realise if Xbox was it's own thing it would 100% be dead by now right? The only reason it even survived the RROD fiasco was because of the parents companies money. You can't have it one way or the other depending on the situation..
EA bought Bioware, why would EA keep a game exclusive? what you're proposing just doesn't make sense. I'm sure MS would have liked to keep ME exclusive but the ball was in EA's court for ME2. Unless I'm mistaken here.
Now letting Bungie/Destiny exclusive go is something I can agree with but ME is a completely different situation
As I said man I would love for them to announce the building of even just ONE new studio making AAA new IP's but given how their new IP output this gen has been in terms of sales why the fuck would any executive sign off on that? If I was in his shoes I'd just respond with "I'll just burn the money here instead at least it'll keep me warm". Especially when if you really wanted to do that (which sadly doesn't seem to be the case), you could just hand it off to a third party for a much cheaper price. There's nothing wrong with criticizing them for it but at this point people should see that all they will make smaller, cheaper games like Ori, Cuphead, Recore & have a focus on indies while making the usual suspects. Don't gotta be happy with it (I'm not either) but that's direction things seem to be going when it comes to MS. Maybe if the smaller games like Recore take off we will see it become AAA, but until then I'm not getting my hopes up