eat their own dog food, but they won't have to code cross-platform Windows Phone 7 games in their spare time -- Redmond job postings recently revealed that there's a studio for that, which will develop and publish first- and second-party titles on the company's dime. According to job descriptions, the newly-christened "MGS Mobile" will develop "showcase" Windows Phone 7 titles with an emphasis on connected play, and also incubate titles from indie devs and partners like the original Microsoft Game Studios, its older Xbox-based sibling. Interestingly enough, games won't necessarily be limited to Windows Phone 7 devices, but may appear on "emerging mobile platforms" as well -- the idea being to advance Microsoft's position in the mobile gaming space rather than just pimp the WP7 platform. Is the world ready for Halo on MeeGo? Oh, you bet your britches it is. Just don't expect to see Xbox games on Android, yo.
Update: Looks like Microsoft's actually been on the job hunt since June. It's just so hard to find good employees these days.