Buying up promising studios has not worked out for Microsoft very well recently. Purchasing one like Undead Labs might work as long as they just give them money and then STEP AWAY.
I understand jumping on the "games as a service" bandwagon somewhat but forcing traditional studios to follow that model has been a disaster so far. If you want a piece of that pie then assemble or buy studios that specialize in that.
Meanwhile, Sony and Nintendo have been knocking it out the park lately with traditional games. They might not be a cash cow like a successful "games as a service" title but they draw consumers to your platform. That's kind of important. Microsoft tried to put the cart before the Xbox. They were so eager to tap into the newest revenue streams that they forgot to secure a consumer base.
And buying up indies won't bring people running back, either. They need a new Halo or Gears. They need fresh blockbusters that can grab headlines and make people want to drop a few hundred dollars to get an Xbox. They're going to have to be willing to work from the ground up.
The best thing they can do right now is to hire the very best in the industry, give them a budget, and tell them to build their idea of a perfect studio.
