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ToxicJosh said:
If Microsoft did decide to abandon the console market (and I think it would take the Xbox not making any money for 2 full years, including software, licensing and gold subscriptions), I think they probably would approach Nintendo as a buyer for the division (although probably not on such generous terms as in OP).


The other benefit there is people could continue working in much the same way without having to relocate or something .... Nintendo of America and Microsoft are literally across the street from each other.