Microsoft has a lot of older IPs that lend themselves to mobile/indie-style shorter games and not just the ABK legacies. Things like Conker, Kameo, Fuzion Frenzy. Or yes, Spyro, Pitfall, Banjo Kazooie. But given that a lot of the new team personnel comes from King, maybe they're looking at bringing those mobile games to Console. Or similar new IP.
Everybody looks fondly back on the 360 days and one of the hallmark of the 360 were precisely the small, passtime-class games like Peggle, Zuma, Bejeweled, et al and the board game adaptations. Not only are those game cheaper to develop and price, but they also pay beautifully via cloud.
For all the hopes for a new HEXEN or STARCRAFT, what I woud expect would be simpler and more accessible and arcadie, bite sized game, suitable for living room multiplayer. Sell cheap, free to pay, ad-supported, or make them GamePass exclusives. Instead of tens and hundreds of millions and years in development, crank out four or five a year each good for a few minutes per level like the even older classic arcade games. Suitable for phone console, TV or cloud. And above all: cheap!
At least it shows that XBOX understands that pixel-pimping $100 time sinks can't be the sole focus of a profitable gaming ecosystem. XBOX knew this in the Moore/360 era. About time they remembered their roots.