Microsoft executives have paid several visits to both Sega of America and Sega of Japan over the past 6 weeks. They are embroiled in high level negotiations for the software giant to purchase the Japan-based software publisher. Although both companies are not commenting, moles within Sega of America have informed us they have seen Microsoft execs touring the San Francisco facilities of Sega of America over the past weeks.
An acquisition of Sega by Microsoft would undoubtedly give the Xbox exclusive Sega content, such as their 2k series of sports games, the trademark Sonic brand games, and high profile fighting games like the Virtua Fighter series. This could be what Microsoft needs to swing the tide of the console wars in their favor--though they still have a lot of catching up to do.