Yea they’ve even managed to sign up Hironobu Sakaguchi (of Final Fantasy fame) and his new compnay Mistwalker to MS Game Development Studios.
Clicky for a full list of the new developers and the article itself.
Personally i’d like to see the Xbox2 out sell the PS3. its always bugged me that the Xbox, even being the superior console, has been outdone but the PS2 due to lack of bigger games for so long.