MS could have deciomated the gaming market long time ago, if they actually cared about xbox.
The amount of money they have, plus the time line during the gaming period, would have allowed them to buy alot of studios with little hassle.
I doubt that. Well, if it were the current management. 360 management pre-Kinect? Possibly, especially with guys like Peter Moore and J. Allard still around with the division at the time.
However I think in light of recent events it's clear there are upper managerial issues with the Xbox division and it doesn't matter how much money you throw at the division: if those issues persist then their potential will always be bottlenecked by it. We've also seen companies like Nintendo and Sony dominate core gaming with far less money at their disposal, so at some point money becomes less of a factor and talent nurturing & efficient upper management are the bigger factors.
Otherwise you get companies like Sega who had the talent but severely lacked cohesive upper management (and also obviously lacked the money of Sony and cash reserves of Nintendo). I think at this point Microsoft have the raw talent, but their potential is hampered somewhat by lackadaisical upper management and maybe having too much money at their disposal (which might be leading to the sense of feeling too secured, taking too much pressure off which could impact drive).
That's my opinion on it, anyway.
And now, gaming world is big. So buying these big studios doesn't affect anyone, like it will in the past.
What? Of course massive acquisitions are affecting other companies, especially other platform holders. The dynamics of independent studios and publishers on the open market for business-related dealings shift significantly relative to the size of the entity acquired.
That said, even with those changing dynamics things can more or less end up as net positives for the market as a whole...
potentially. But actually declaring that definitively will require time.