As long as families have children Nintendo will never be bought out.

30 somethings are probably Nintendo's best demographic.

Nintendo's market cap right now is pretty close to $50 billion dollars, but to acquire a company generally you have to overpay, so you're talking $60-$75 billion ... don't think even Microsoft could stomach that. The largest purchase they've ever made was LinkedIn for $26 billion. Spending three times that amount for a *video game company* is a grossly ineffecient use of resources, it would take them forever to recoup that money. 

Discussion on wether MSd would be able to make such a purchase or not apart, would MS be willing to put so much money into a market where they don't make any profit ? I highly doubt it

lol It would take like 3-5 Wii U level failures in a row before Nintendo would probably throw in the towel, but they go through successful cycles as often as they do the bad ones, if not more often (DS, Wii, 3ds especially late, and now Switch) so Nintendo isn't going to throw in the towel for many, many years to come if they ever do.

The xbox brand, on the other hand, has had one successful device out of 3 (the original didn't sell well and the xbox one isn't going to sell nearly as much as the 360, imo) so it makes a lot more sense for microsoft to put their games on Nintendo devices going in the future. But the agreement will probably be that Nintendo has to create top of the line devices in the future otherwise all the "hardcore" games will simply go to playstation.

IMO, MS should just get out of the game business, keep XBox Live but come to an agreement with Nintendo where they continue to manage the XBox brand for a period of 8-10 years and then both parties revisit and decide what to do beyond that.

So basically the opposite. Microsoft should be the one going out.

Microsoft wouldn't want to throw out that much money. That'd be one investment that wouldn't pay dividends throughout the whole shareholder's lives. It's just not worth it in any way.

IF Microsoft ever bought Nintendo they would be a cancer upon their ips and to entertain the idea is just sad

I hope it's the other way around, microsoft and nintendos IPs fill the gaps the other company doesn't have. But I much rather have nintendo managing these studios than microsoft doing so.