Though this article is based on pure speculation, there might be some truth behind the whole story. It would be a smart move from Microsoft indeed, after all they've got deep pockets to supply what is needed for their x-box console.
If insider speculation is to be believed, Microsoft has bought US publisher Vivendi, with an announcement to that effect due soon. Take a deep breath and reflect on the implications of that, if true.
Half-Life 2, Warcraft, Counter-Strike, Crash, Spyro, Lord of the Rings... Vivendi has an enormous portfolio boasting some of the biggest titles on all formats, and it would be an ultra-smart move on Microsoft's part to snap them up. Such a buyout, of course, would come at a terrifically high price, making the 365 million acquisition of Rare look like peanuts. But if anyone has the necessary funds, it's Microsoft.