I don't think Epic wanted to be bought and although they seem a good fit I suspect they would have been a legal minefield for MS.  Consider how many agreements EPIC must have in place to support their engine across multi-platform titles/developers.  I doubt MS - as tempting as Epic must look - would want to actually be responsible for providing on-going support for a multiplatform engine.

Bioware I think MS did indeed miss as a great purchase.  It's cost MS a signature former console exclusive and a former fairly MS centric third party developer.  EA will for sure make sure all future Bioware IP/titles are fully multiplatform.

Remedy seem like a good potential purchase although the relatively muted sales of Alan Wake might have tempered any interest MS had.

TBH though I think it is pretty clear at this point that MS decided to rely on one core exclusive, Halo, coupled with a number of funded exclusives and a lot of purchased timed exclusives to drive the initial growth of the 360, particularly in US.

Now I think MS first part focus will be Kinect and I think they will rely on install base, momentum and third party support more for the supposed 'hardcore' along with more Halo and more timed or funded exclusives.

At this point, I'm not there are that many developers left they could purchase that make sense for them at the moment.

Yeah I think that letting Bungie slip was a bad move, for both MS and Bungie, I guess it's a matter of time until Bungie regrets its decision to ally with the devil of the video game industry. I think letting Bioware go to EA was a horrendous move too, despite the higher popularity on 360, both ME and DA will become multiplat no doubt, could have been a great part of the exclusive library imo. Tbh whichever way you look at it, the multiplatform games are sufficient enough, coupled with Halo to attract relatively high sales, I mean after all, out of top 5 games on 360, 4 are third party - Same goes for PS3.

Euhmm, There are a few comments that aren't true here... Rare as an example had done very much the last year (they developed the software for kinect and kinect sports). Letting bioware go to EA was indeed a mistake. But what is been said about bungie isn't right... In 2000 microsoft bought them, they made the halo games and then after the succes of halo 3 microsoft said they were free. Bungie ISN'T owned by ACTIVISION, they just have a partnership... This means they can still make halo games and they probably will make one after a couple of years. And don't forget the newly founded 343 studios... They have a lot of potential i think

um avatars

the new xbox experience (or whatever they called it)

Big part in Kinect

Kinect sports

Trolling much?

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They should buy Activition and Take-Two.

Imagine the epic HD battle...

Microsoft Exclusive:

Call of Duty: Modern Warfare 3, Grand Theft Auto 5, Halo 4, Red Dead Redemption 2, L.A. Noire, Gears of War 3, Max Payne 3, Agent, Duke Nuken: Forever, Bioshock Infinite, X-Com, True Crime: Hong Kong, X-Men: Destiny, Prototype 2, Forza Motorsport 4, Codename D, Project Draco, Haunt, Alan Wake 2, Mechwarrior, Codename: Kingdoms,

VS.

Sony Exclusives:

Uncharted 3, Killzone 3, Little Big Planet 2, Twisted Metal, Motorstorm Apocalypse, Infamous 2, The Last Guardian, and some other 1st party games and Japanese niche games.

uh? games i mean! , why does it sound like trolling to you?

Coz you are using the basic "Rare has done nothing since it came to MS line" its kinda annoying now. People should understand Rare has done quite a bit since coming to MS as stated about the things I mentioned.

Why the hell would they get rid of Rare to get someone who does games, you know MS makes a shite load of money, they can afford more then 2 companies at once. From what I have seen RARE has done brilliantly.

Kinect Sports = sooo much fun

Banjo Kazooie: Nuts and Bolts = Great idea (hope they continue on the original idea)

Banjo 1 and 2 brought to xbox = I love these games, wouldnt have been done without purchase

Viva Pinata = Underrated game almost of the Gen imo.

Rare has done plenty and as someone mentioned helped write the software for Kinect, that alone makes MS see enough value for them. MS is using RARE as they need to. Avatars etc.

Why do you sound like trolling, because you either didnt know this information, or you are writing what you are writing to stir up something. Which one is it?

Nope they shouldn't buy any developers. It is too risky for a 1st party console maker to have too many developers because it increases their exposure to risk when launching a console is already fraught with significant risk and expenditure. Their strategy worked extremely well so I don't see any reason why they oughtn't continue it.

P.S. How many western publishers are in the black this generation? That is another significant reason, and they had access to three consoles,  PC and two handheld markets.

You have this theory dont you? haha

I dont agree with this though on the terms that MS need to protect its exclusives, I personally don't want to see another Mass Effect 2 happening like FFXIII for ps3, they should stick to said consoles, otherwise what the hell is the point of having 2 consoles out at the same time. Nintendo is doing it right, they have an amazing amount of exclusives. And look at the Wii goooooo