One of the head honchos over at MS recently did an interview with IGN. Here are some highlights:
1) Unannounced Rare game to be released this year.
2) Fable to be released this year, not in 2004.
3) Closer relationship with SEGA
4) Close to online deal with EA
5) 5 Rare games released by end of 2004.
6) Lots of surprises for E3 (well duh!)
Read it for yourself:
http://xbox.ign.com/articles/388/388754p1.html