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A buyout of SEGA Sammy would certainly be far cheaper than trying to take on Yahoo and would position Microsoft well for the release of the next Xbox console.


Whoever wrote this doesn't have a clue about Microsoft and business at all. The idea that because the Yahoo takeover didn't work Sega might be a nice substitute is ridiculous beyond end. Really.
Microsofts core business is operating systems and internet. Period. Xbox is a way to get attached to peoples TV screens, to ensure that MS standards are applied there and also to prevent Sony from dominating the living room.

Buying Sega would be a bad decision. The franchises are valuable if they can be spread over several consoles. As 360 exclusives the games won't be as successful.
The cost of buying Sega can never be earned back on 360 alone and therefore I doubt that the shareholders will allow Microsoft to make such a takeover, outside their core business.