It may interest everyone to know that Sony's assets are worth triple what Microsoft's assets are worth.

http://en.wikipedia.org/wiki/Microsoft $78 billion

http://en.wikipedia.org/wiki/Sony $230.5 billion

EA: As some people have posted, actually loses money, despite being the biggest selling 3rd party that there is.

Square: They're beloved, but their games ain't as big as they used to be. Having FF exclusively in Japan would definitely sell some Xboxes, but would the high cost be justified?

Rare: Fucked it up for everybody.

Because Microsoft sees more interest/user base gain from buying timed exclusives and/or making more multiplatform games that were once exclusive to the PS3. They are pretty content with Turn 10 and they already spent millions on rare (who while not making a lot of great games recently were responsible for the Avatar system).

psssst.... the gaming division is not the only one they got ;)

I don't get all this stuff.

What do assets actually mean and what do they do?

Microsoft is clever.

It's all part of the plan.
By letting Sony believe they can still compete with them, they ensure that Sony will continue to bleed cash to stay on the gaming market. A slow and paceful death.

Why?
To anihilate any chance of a comeback from Sony when Microsoft will decide to"Finish Him".

Playing low-profile is the way to go.
This way, Microsoft will stay off-radar from antitrust regulators. Microsoft won't seem to crush the market, but to work hard to compete and stay alive with the competition.

It's all part of the plan.
Just wait a few more years.

you picked the 2 companies that are not worth buying for MS.

EA -> Huge loss of value due to discontinuing hit multiplatform franchises.

SE -> Jap firm... you'd have all the brains of the company leave for other prestigious Jap companies.

http://en.wikipedia.org/wiki/Asset

Taaa v much

Actually, Microsoft doesn't have the money.

Their stagnated stock price has made their stock holders hungry for dividends. Right now, even though the entire company has many times more market value, their cash reserves are almost equal to that of Nintendo's and I don't mean just the gaming division. Technically speaking, Nintendo could match their offers without using debt money. So it's a little pointless to think in those terms.

And besides, would you really want gaming to just be purchased like that?