I hope they do it, but I doubt it's true. The only thing I know for sure is whatever the wrong move is, Balmer will do it.

I can't imagine the other third party developers would be too thrilled with an EA/Microsoft alliance.

Well there are also rumors that EA is buying THQ. So this could all be a stunt so that EA can come up with the money to complete their purchase

Source- http://www.minyanville.com/articles/games-video-thq-erts-activision-microsoft-wwe-intuit-dell-perot-deal-gaming/index/a/24608/from/yahoo

Too be honest I'm sure MS would have no problem if EA continue to support the DS (MS has published games on DS before themselves I think, and MS doesnt have a handheld so theyre not competing).

Wii, I'm not as certain as with DS, but I could see MS allowing EA to support Wii as well. In fact it would make MS $. Wii and 360 are not really in direct competition, 360 and PS3 are. I can see MS gladly selling Tiger Woods Golf on Wii and taking the $.

PS2 is rapidly dying and doesnt account for much sales even now.

PSP sells very little software and is  middling popularity at best. No meaningful loss.

PS3 is the biggie, but considering that it costs a lot to develop for since it's so complex, it would probably be fine to drop it. IF ms does buy EA, then PS3 is probably dead anyway, so the sales will just increase a lot on 360 along with not having to worry about expensive development on two consoles anymore.

And you forgot PC, EA can still make games on PC.

Overall I dont see this happening, but I dont think the argument that MS cant do it for multiplatform reasons is an insurmountable one.

Rare have made a very small number of DS games. The Zune HD may end up changing that

For everyone who say unlikely, I thought Disney buying out Marvel was unlikely too.

The difference in multiplatform development cost and exclusive development cost arent that much different,  Ive heard some people on here say as little as 10% increase.  For most companies the cost of HD development is too expensive to limit it to one console, thats why alot of 3rd party games have gone multiplat. 

They used to, but not anymore: the number of PC games they've published in the last few years has declined dramatically, and they've shut down many of their PC-centric studios. Recently, they even strongly hinted that the hitherto-PC bound Alan Wake (which started as a PC game) would be a 360 exclusive.

It appears Microsoft is abandoning the PC market entirely.

 What are they going to do about it? Abandon the 360? That would require them to sacrifice the bulk of the HD market. Make more Wii games? HA! Focus more on handhelds? HAHA!

hope not, EA makes some damn fine games

Anyone any idea on whether this would hit any anti-trust barriers? I mean, MS wouldn't be buying a competitor as such, but on the other hand it clear has massive competitive implications for the marketplace.

I have no idea myself, but wondered if any budding business lawyers on the forum might.

More like unexpected.  I never even heard a rumor that Disney was interested in Marvel,  so how does this situation apply here?