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src on 18 June 2020
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Microsoft already had their chance. They had some of the best developers all within their grasp during 360 and they messed it all up.

Bungie - creator of the best selling FPS of all time at the time. Halo was also a media monster. Its 3.3 million in 12 days opening in US is still unmatched.
MS fucked it up by forcing them to continue working on Halo, which eventually led to them leaving

Lionhead - basically Bullfrog at the point MS hired them, had the best selling PC games of all time at that time, and insane talent. One of them went on to create Deepmind, another is at Bungie as director of production and 4 of them left to create Media Molecule which Sony bought. Molyneux also eventually spiralled and left.
MS fucked it up by making them a Fable studio. Bullfrog was recognised as one of the greatest due to its wide variety of IPs. Hearing they were just a Fable studio led to the splitting

Epic - can you imagine how different things would be if MS had Epic. Gears of War was a gigantic success for them.
MS was too constrictive of their output, resulting in them wanting to cut their ties with any publisher control

Rare - do I even need to say anything. Following their unbelievable N64 output MS bought them for an eye watering $377 million. A shadow of their former selves.
MS once again fucked them up with their focus on mature games and corporate culture. The founders left shortly, the GoldenEye/Perfect Dark team left to make Timesplitters at Free Radical, much of the platforming team left for Playtonic making YokaLaylee and to drive away further talent MS had them as a Kinect studio for many years

MS had 4 ND level studios (even higher considering the properties they had) and they fucked up every single one of them. The new studios are a start but can't match the pedigree of the prior four which MS will never again attain.