Well, I think SE never would let MS buy them. Think about it. To wich platforms do they release and sell most games? Yeah, Wii, DS and PSP. I don't think even Microsoft's money could change their minds to only make games for Xbox consoles. And I don't really think MS would let SE make Wii, DS and PSP game, despite that Rare has released a few GBA and DS titles. I mean if Microsoft released Dragon Quest X for the Wii it wouln't help their console.
So it's never going to happen. Not as far as I'm concerned anyway.
And Sony and Level-5 could be possible, but I don't think that Sony have that kind of money right now in their current state so they will leave it be.
And I really don't think the games should increase in the quality if, in first hand, Microsoft bought Square Enix. Even they don't have the money to fund development costs and publishing for all SE games so they rellay could increase in quality.
