Could Microsoft Purchase Square Enix???

[couchmonkey]

I think the message from other posters is pretty clear: Of course they could, but they won't (and they shouldn't).

MS could have purchased any of the big Japanese third parties years ago, but it did not. Instead it started up some new divisions and partnerships...maybe this is because MS thought that was all they'd need, but more likely it's because the cost is much more reasonable. By the same token, the other devs Microsoft has bought or worked with were mostly pretty small.  Rare is probably the biggest dev MS purchased, and look how that turned out (and I love Rare).

I think the idea that this would allow MS to win the generation is...questionable. 360 already has a much better lineup of RPGs than PS3 or Wii, and it's still performing dismally. Furthermore, Wii and DS have taken Japan by storm based mainly on the strength of new "casual" games - DS became #1 purely on Nintendo's products, Final Fantasy III was just the icing on the cake. If Square Enix supported PSP only, I think DS would still be winning.

Long story short: Square Enix doesn't have the influence it once did, and while Microsoft can technically afford it, it's still a lot of money to gamble...to quote "Bill Gates" on the Simpsons: "Oh, I didn't get rich by writing a lot of checks!"