So Microsoft, you look as though you're doing quite well. Sold some systems... had a little hardware problem but even managed to escape that dibacle. The West is nearly won, but the East offers a grim reminder of how new you are to this game, and how much work is left to be done to solidify yourselves as a true power.

Allow me to introduce you to a great Japanese developer, a legend in all parts of the world, and one that has a portfolio of franchises, of which most have been long forgotten. Microsoft, this, is Sega. Not only is their portfolio expansive, they hold the rights to one of the most iconic characters in video gaming history. Yes, that would be Sonic the Hedgehog. This is also the company that employed a certain former employee of your own company, a certain Peter Moore. The same Peter Moore who launched Sega's last attempt at a console, and your current attempt at a console.

The paralells, are well, unparalelled. You owe it to yourselves to purchase the company that was essintally your entire inspiration for the Xbox brand and Xbox Live. You need a foothold in Japanese consumer's minds. They need the financial backing to go back to their hayday and start making great games again. They were pioneers in the arcade, when 3D first started to become possible. Virtua Fighter was a defining game for the 3D fighting genre, and is still an excellent franchise. Shenmue, for its time, was a graphical and gameplay marvel. It spawned a sequel, and is still in high demand, with many people still waiting for a third installment. It had a huge Japanese following, and with an MMO version of this game, would basically secure a hardware sale to many a Japanese gamer, since your console would be the only place it could be played. The same would apply for other great franchises. Here's a short list, in no paticular order.

• Sonic the Hedgehog
• Virtua Fighter
• Sega Rally/ Sega GT
• Shenmue
• Vectorman
• Streets of Rage
• Phantasy Star

Imagine the implications for your Live Arcade service. Imagine a series of Sega classics remade into HD, much like Rez and Ikaruga. Streets of Rage HD, Sonic HD, Vectorman HD, Kid Chameleon HD, NiGHTs HD, etc. Arcade perfect ports of Virtua Fighter, Virtua Racing, Virtua Cop, Star Wars Arcade, Sega Rally, Daytona USA, etc. all with online play/leaderboards and achievements. Imagine some of your favorite classics like Gunstar Heros, Ranger X, and Ristar, with leaderboards, online play, and cutting edge graphics and sound.

With your money and marketing savy, and their portfolio and reputation, the possibilities could be nearly endless, not to mention fairly profitable.

P.S. Windows Live Space blade and integration. Get it done after you take care of that whole Sega thing. Or even before, either way.