i really think it's amazing how at the microsoft press conference they were talking about "HEH WE GOT RESIDENT EVIL 5, HALO 3, CALL OF DUTY 4, GEARS OF WAR 2, FABLE 2" and all this other bullshit. the point here is this is all sequels. look even at fallout, even though it's not a sequel it's the third in the series. seriously, are there no original IP games out there that won't be terrible? too human maybe but things aren't looking good.
this is more of a general game industry thing, so it's not microsoft only. in fact, look at the last two blockbusters: metal gear solid 4 and grand theft auto 4.