My guess is he'll go to Mistwalker: a Japanese company that is so deep in Microsoft's pockets that it's tough to tell where one begins and the other ends.

he'll form his own studio, Microsoft will then pay him out for a couple of exclusive tittles, that way it's a win win situation for both parties involved

Well, if he gets enough money out of the suing, he may not go back into games at all.

Good riddance, I say.

Considering the fact that Itagaki's basically burned every bridge he could find, his options are pretty limited. I can only see him starting his own studio, since there are few companies that are going to hire someone who's suing his last employer.

Microsoft Game Studios or its subsidiaries.

I'm sure Microsoft will be after him. They'll see him as a way to garner more credibility in Japan.