dallas on 31 August 2007
Yes, MS's profits have been nice indeed, but MS has to divide this money among its divisions, and still leave enough for dividends but do you really think that Microsoft would allocate a much greater than normal amount to the X-box by the act of purchasing Square Enix?
Thirdly, MS has about $6.1 billion reserved in cash. A purchase of SE would take this down to zero or very close to it, so MS would have to go into debt to do this. Not only would MS have to pay a premium for a company that it couldn't strategically make much use of since its strongpoint in games is america which traditionally hasn't been that big on RPG's, but it would have to go into debt in order to do so thus defeating your argument.
