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if anyone thinks this will give Microsoft an edge as far as software is concerned, theyre pretty much flat our wrong.a good 70%+ of havok use is highly modified from its original source, the license is just a requirement to use the codebase, whether it be stock or modified.
It's the same as any other licensed software that provides full source to licensees.
i dont know if we know how much microsoft paid for havok, but i doubt they will be seeing a return on investment from license payments any time soon, it is more likely that the acquisition was done simply to to tighter integration with directx, windows and to padd out their existing XNA framework and XDK toolset.