Well... Not exactly.
Microsoft still has to answer to shareholders, they don't get a free pass to spend billions at the drop of a hat.

Well thats why they are rich and you're poor. They won't make money from those purchases to cover the cost they spent in acquiring them. Then again they spent $2.5 Billion on Minecraft which they'll never make back, same with Nokia, so they have made dumb decisions before

Hence why if they bought a company like EA it would just be pocket change for them. It would just take them well over a decade to make that money back and shareholders don't like that.

What makes you think I'm poor? 

Also, making more exclusives doesn't exactly kill your competitor. Especially when Sony dominates in regions MS has little relevance.

Buying PlayStation is a more realistic scenario than killing them with exclusives at this rate. Or another scenario would be buy all notable 3rd party games and make them exclusives, which is also unrealistic.

Minecraft is one of the most popular games out there.

Every console generation they will have new versions of Minecraft so theyll make money of: 

 Sales of the game through various platforms

Minecraft: Story Mode

Realms, owners essentially rent a ‘realm’, private server, from them (I looked this up I had no idea this was a thing) 

Merchandise (Clothing, Books Toys, Lego sets etc) 

Minecon tickets ($160 US, about £128 sterling.)

The DLC skins

Potential Movie, TV deals.

They can use Minecraft for marketing. 

The Minecraft buy was a stupid business decision (Unless they make a sequel or something like that which would be just as dumb of an idea but it sure would sell) but they will easily make it back eventually. 

every company i have worked with has a Microsoft infrastructure and have gone to the cloud services as well. not surprising.

I have seen estimates that if MS sold off Xbox, it would be worth about $25B. When you look at MS's value currently being around $750B, it kind of makes Xbox look like a small hobby Microsoft has on the side! :)

The entire PC platform exists to make Microsoft money. They make ridiculous amounts just on Windows and Office alone. When you actually look at where their profits are coming from (and not just revenue), then you will realize that they entire XBox brand is irrelevant to them.

I feel like it's important to correct it though. Net worth and market cap are two vastly different concepts. Just in this thread alone there are many people that seem to think that Microsoft's market cap means Microsoft has 750 billion in cash, which of course isn't the case.