They could theoretically buy SE just fine. But, why would Microsoft want to commit much greater resourcs than normal on a platform that has been thus far producing horrible financial results? That just doesn't make sense, b/c it is bad financial management. If microsoft actually bought SE it wouldn't have the money that it needs for Windows, dividends, its other ventures, HD-DVD and the 360. Buying SE would handicap Microsoft and it makes little point anyway from a strategic perspective, b/c SE is mostly a company that makes RPGs which means that its products will be big in Japan....but the Japanese don't like the 360. So unless Microsoft is planning on a *huge* price drop in japan as well as this purchase I don't see the point, and even then, that would probably not put them over or even close to nintendo so it would in the end accelerate their losses.