Microsoft is looking to dominate the galaxy, at least at the United States Patent & Trademark Office (USPTO), where on the 1st August the publisher trademarked "Galactic Reign
" under the goods and services description of "video game software,"
with a specific mention of "online video games."
Perhaps it's a new sci-fi shooter to go along with Halo and Gears of War. Less likely, but still an option is that Microsoft is working on a 4X space strategy game, which has been a trend lately.