Element, another insider who has been reliable on inner MS Studios in recent past said kinda the opposite
http://www.neogaf.com/forum/showpost.php?p=246393776&postcount=2143
Budget isn't really decreasing, just the games they are making are costing more.
The idea of a "blank check" has never really been true...not sure why people kee thinking just because they are under MS they have a blank check.
Was about to say that. That "blank check" thing sounds abit weird. I mean thats just stupid thing to do even for MS.