Microsoft mulls buying game developer
Reuters | at | by Mike
Software giant Microsoft is considering acquiring U.K. game developer Rare in a bid to jump-start development of its own video games for the Xbox, a source close to the discussions said on Wednesday. The source familiar with the discussions said Microsoft is "definitely looking at (Rare) as an acquisition target." He said Microsoft had approached Rare recently, but said he was unaware of the status of talks.
Successful games are crucial to console makers, who tend to sustain sometimes-steep losses on their hardware, which they make up through healthy profit margins on software sales. Microsoft, for example, is believed to be losing anywhere from $76 to $150 on each Xbox, which retails in the United States for $199.