I can see it now.  Kinect enabled Rock Band, you get bonus points for head banging and being over-dramatic when playing your instrument.

Hmm, I'd rather Microsoft take up the Zenimax approach and buy up and coming talented development teams. Harmonix is an expensive studio, who are experts at making games for a dying genre and they haven't got much experience outside of said genre. If Dance Central becomes a huge hit, then maybe it'd be worth it, but if dancing games lose their selling power in a few years, then Microsoft are stuck with a meh team to make Halo map packs.

Honestly I think Microsoft stands to benefit only a bit from buying Harmonix. Sure they are great at what they do "Music Games" but what else do they bring to the table? Nothing. They only own a few IP's and RockBand their biggest IP is on its way out. Dance Central while valueble probubly won't last longer then a generation or two.

I don't think what they do is "Music Games" completely. In fact I'd say they're more in the business of finding new ways to play. Sure all their games are music oriented but the other common factor is that they all provide unique experiences from the rest of the games out there. They like reinventing and re-establishing genres. Case: They made the original Guitar Heroes. After doing so twice they got tired of doing the same thing and decided to split off and make Rock Band; a similar game with an entirely new dynamic of playing as a team. They've only reinvented that further with the marketplace, improved instruments greater resembling their real counterparts and creative game modes. Now they come out with Dance Central - another game with no true competitor in experience.

What does Microsoft gain, a few "AA" franchises. Now remember when MS bought Rare for over 200-mill. They gained like a dozen IP's and a few of them were AAA titles. But after purchasing them their IP's went downhill and today they can't make the same AAA games they were known for. Bungie Microsoft purchased them and guess what they lost the founders and lots of the developers left. Finally Bungie went independant again.

Microsofthas much to gain from purchasing Harmonix. They just released Kinect. Harmonix is known for making peripheral driven games with new experiences given their track record. It's not so much the franchises they will be getting now... it's the future franchises that Harmonix could possibly come out with to make Kinect even more appealing.

Unless Microsoft has some games in mind that they think only Harmonix could do they aren't going to buy. I mean Microsoft is downsizing their first party studios. Ensemble is a great example of a highly profitable studio with several IP's and Microsoft closed them.

Whether MS is actually considering this purchase is beyond my knowledge. I can only comment that I think it's a good fit. MS is restructuring their first party studios. Ensemble is closed, yes, but a great deal of the team went on to form new studios with MS's help. For example, Robot Entertainment is set to release a new FTP Age of Empires published by MGS. I do wish they left Ensemble alone but it's not all doom and gloom.

What makes Harmonix better then Ensemble or Bungie? What does Harmonix offer that none of Microsoft internal studios couldn't do? What potential do Harmonix IP's have for Microsoft?

Unlike Ensemble and Bungie, Harmonix develops more unique experiences that resonate with a very broad audience and different audience. Ensemble and Bungie both delivered top notch games but they did so in a very highly populated and competitive market. Harmonix on the other hand has either invented new genres or redefined the standards with their games. For MS this makes Harmonix look very promising when you consider Kinect and what Harmonix have already managed to do with it. None of MS's other internal studios do this out of the box development. They all provide core experiences to well established genres (ie. racers, shooters, action-adventures, RPGs, RTSs).

My bet is Activision will pick them up to get rid of competition in a rapidly shrinking music marketplace. Or EA will buy them to offset Activisions lead in the industry. I don't think any of the big three will be to interested in investing 90 million, which is what they want.

Let's pray Activision doesn't pick them up. I'd be happy settling with ANY other outcome (barring no one losing their job)

They aren't just a rock band company anymore.  Try Dance Central and come back to me.

People always go on and on about MS's lack of studios. Then when rumors start circulating people often make excuses why any studio purchase by MS is a bad idea :P

My favorites include:

1. The Rare excuse(really stupid excuse)

2. The it isn't financially viable for the studio being bought. They won't make as much money being 1st party studio( Really the worse excuse ever)

3. Microsoft likes 3rd party exclusives more(this holds a little more ground) 

4. MS shuts down most of their 1st party studios so if the company allows them to be bought is guaranteed to die(then why do they have so many 1st party)

I see #1. Kitler's is a new one ...

People always go on and on about MS's lack of studios. Then when rumors start circulating people often make excuses why any studio purchase by MS is a bad idea :P

My favorites include:

1. The Rare excuse(really stupid excuse)

2. The it isn't financially viable for the studio being bought. They won't make as much money being 1st party studio( Really the worse excuse ever)

3. Microsoft likes 3rd party exclusives more(this holds a little more ground) 

4. MS shuts down most of their 1st party studios so if the company allows them to be bought is guaranteed to die(then why do they have so many 1st party)

I see #1. Kitler's is a new one ...

they don't have so many first party