What can we realistically expect from a new Xbox 'AAAA' studio?

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Recently, Microsoft posted (then deleted) a job listing for a manager of a new Santa Monica-based "AAAA" game studio, but what can we realistically expect?
Microsoft's first-party games lineup has been under a microscope as of late. With PlayStation putting out photorealistic blockbuster after blockbuster, Microsoft hasn't really met them head on. Xbox has had a ton of success regardless, owing largely to third-party developers and its Xbox Live legacy, which remains, arguably, the most stable gaming platform on earth. But core fans are increasingly noisy about the lack of truly great games emerging from Redmond.
Xbox faced issues when it was part of the now-defunct Windows & Devices Group at Microsoft. Now, Xbox head Phil Spencer is fully in charge of the division, and is able to splash the cash to invest in new content. The first signs of this arrived with the promotion of Matt Booty to first-party games lead, and the hiring of ex-Tomb Raider studio head Daniel Gallagher, who is, "coincidentally" based in the south California area, where Microsoft is planning to set up a new studio.
SoCal has a vibrant developer community and is a focal point for industry talent. God of War, Sony's recent hit, was developed in Santa Monica too, where Microsoft is seemingly seeking to build this new studio. But this late in the generation, what can we realistically expect here?

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