Don't care, honestly. I'm living in Europe and PC Gaming is bigger than console gaming over here. If Microsoft is going to purchase more companies and Playstation starts to release it's titles on PC more often, the issue just exists on consoles and the direction more and more gamers should move to is PC gaming. Right now the only reason to buy a console is the price point or exclusives, since PCs have become very expensive these days. If someone unfamiliar with gaming asks me, what's the best way to go, than I always pick Switch & PC if you want most games and the best package.

Right now I have an ok-ish PC at my desk, PS5 in the living room & Switch lite on the go and to be honest it's not that expensive and I'm not missing out. Yes, my GPU is kinda outdated waiting for cheaper prices, but it's not like raytracing is mandatory to enjoy a game and the majority of games is running great. For the future, I guess almost all games are going to be available on PC and there is no good reason for picking a console. Xbox Series will be the first Xbox console generation I won't buy, since it doesn't make much sense to me and maybe PS6 is following straight if Sony continues to publish PC ports more regularly.

The only thing about Sega that I care about is Atlus. I wouldn’t want their games to only be on Xbox. I love Square’s games but a lot of their new stuff isn’t on the Switch anyways.

As a PC gamer, I should be happy, if the takeover will be of a previously console-only or mainly console publisher or dev, PC will receive more games soon.
But I also know MS really sucks wherever it manages to conquer a near-monopoly, it's not recent news that it's constantly trying to force users to accept SW to become a service, the stronger MS becomes, the weaker users become if they want to resist.
Anyway, last time MS focused on defeating other console makers, it was taken by surprise by both Apple and Google and horribly defeated in the mobile and phone market, this time MS won't lower its guard so clumsily and it's quite true that high budget games are very important for PC, but it's also true that what it can grab on the console market and what it can add to PC environment is smaller than what it's already losing and going to keep on losing as x86 PC share in the personal computing market shrinks as personal computing needs of most new users are fulfilled by phones, tablets and light and cheap Android and Chrome laptops and desktops, while Apple is still strong on phones and tablets and it's growing again on computers, despite still being a niche (but a big and very profitable one).
MS huge cash and assets allow it to take over almost anything it wants, if it's on sale, but its near-monopoly on x86 PC, that's the source of most of its power and money, is losing importance. It's still growing, so MS earns more and more money anyway, and even small increases to already huge revenues keep them incredibly high, but outside of x86 PC other personal computing and communication devices are growing more, Windows has become a dwarf compared to Android, and while still bigger than iOS, a big share of Windows users still resists on legacy versions and refuses to adopt Win 10, or it has HW and SW not fully compatible with it. In a world where Windows isn't essential anymore, the future upgrade of legacy users is a big unknown.
Gamepass adds money, if profitable, but it doesn't add enough power to make up for decreased importance of x86 PC and Windows.
Anyway, in the short and mid term, MS growth in gaming will bring it higher power, and it will bring PC and XB users both positive and negative things. In the long term, larger console market share won't be able to fully replace the space Google and Apple grabbed when MS was busy looking elsewhere.

Any take over has side effects. People are people and they are aware of new management. There are never guarantees that talent will stay with the company, or that game direction won't change. For example, to fit better into GAAS model. Which might have happened anyway like Fallout 76 already effed up Fallout. TES 76 incoming?

Anyway effects will be hard to tell as Bethesda was already changing and failed to put out an elder scrolls game last gen.

I gotta wonder again, did Sony actually come back and made a deal again with Eidos for Tomb Raider: The Angel of Darkness? It didn't come out on the Xbox and GCN until CD took over the IP and released Tomb Raider the second series on multiplatform.

I enjoy Nintendo games more than any other company's games. Despite that, if Microsoft were to buy Nintendo (or any other gaming company) I'd be happy. Why? Because of Gamepass. They could change Gamepass monthly prices to be $60 a month instead of $10-15 and it would still be saving me a lot of money that I'd otherwise spend on games. As far as I'm concerned, Microsoft can buy the whole gaming industry and have a global monopoly. If they achieved that and decided to do horrible things, like charge us all $360 a month for Gamepass, then we can break them apart. So far they've added a ton of games/under their umbrella with no price increases, let alone major price increases. They are making gaming more financially accessible to consumers, giving smaller studios more financially successful opportunities with exposure, and still allowing studios to make additional revenue off purchased DLC content. Why would I want to pay $60-70 for each Nintendo/Sony/Ubisoft/Blizzard/etc. game when I could pay a fraction of that for every game Microsoft owns that is on Gamepass?

I don't buy movies anymore, or cds, or books. I pay a pitifully small amount of money each month in subscriptions to get endless amounts of those things (Disney+, annual Amazon subscription in which I get Amazon Music and Adible books, etc.). If I'm saving all this money in these areas then I should be able to save it in gaming as well, but I can't when so many countless games are locked behind $60-70 paywalls (for individual games).

Have you never noticed that you get to this conclusion at the end of every conversation?

Curious. How would we do that exactly? 

I actually agree with everything else you said. Plus MS seems committed to streaming, which means no more buy clumsy giant PCs and consoles to enjoy games in their full glory (I'm aware it won't be the reality of my country for at least 20 years, but it will be eventually)

It's an American company, and in the USA we have anti-monopoly laws. The government doesn't typically start talking about breaking up a mega company until it starts doing anti-consumer things, such as FaceBook getting itself increasingly involved in censoring information (for example). If MS were to buy the whole game industry and continue saving people tons of money via subscriptions, then there would be no need to break it up. If it were to become anti-consumer, then there are already systems in place to initiate the breakup of the company, we would just need to activate those systems via elected officials. If they are anti-consumer, constituents will pressure their elected officials to break MS up, if they are pro-consumer, then there will be no public pressure to break it up.

I'm hoping for Microsoft to buy Ubisoft, SQE, and Capcom.