The reason is simple, as Azbat pointed out, Microsoft was new on the market, they had to produce a lot of games, and advertise them very early in their developements, all that in order to, first create hype, buzz around the Xbox and secondly they had to reassure the gamers that the Xbox was going to have a lot of games, of all kind.Inane_Dork said:Yes, I know that. I would like to know how basically everyone else manages to keep these things on the sly. If there's a reason, I'll hear it. Till then, though, I have no good reason to suspect that the unannounced projects of other companies are greater than those of MGS.
Once the Xbox sold enough, and once it had the support of a lot of third party publishers, and once they had a global vision of their market, MGS took some decisions accordingly. One of thoses decisions was to reduce, i must say drastically, the number of their internal projects.
Seeing that they "hyped" some of those projects, because of the previously mentioned reasons, thoses cancelations didn't go unnoticed like it would with any other big developer.
But to be honest, some of the early choices made by MGS, and especially thoses made by Ed Fries, were, let's say, questionable that's true.
On the other hand the choices made by MGS today are perfectly understandable and, more than this, they're good for the whole Xbox business, in my opinion.
BTW, canceling a project and selling a developer house and its IPs is not the same thing. One is indeed a bad move for MGS image(Although, judging by the actual market, almost all developers are in no position to give MS attitude if they propose them to fund a project), the other is just a business transaction between two publishers.