A new report suggests Microsoft is up to six months behind on development of some of its next-generation titles, and that competitor Sony's upcoming lineup is currently in a better position ahead of its launch later in 2013.
Anonymous sources speaking to Kotaku said Microsoft has had to cancel several of its internal projects, saying that the projects were not coming together as hoped. There is no indication as to what these projects were.
An earlier rumour has said the Xbox 720 will launch with a new Forza Motorsport and Crytek's Ryse.
Kotaku's report states that these internal development difficulties may have been a factor in Microsoft's current desire to secure high-profile exclusive titles to the next-generation platform, starting with Respawn Entertainment's currently unannounced FPS.
Microsoft has said it will unveil its next-generation Xbox on May 21, and will follow that up by revealing its suite of software titles at E3 2013.