For me there are to ways to look at this. On one hand I wouldn't be bothered by the move personally. Resident Evil 5 is my most anticipated next gen title, and I already decided to buy whatever console it came on. I was going to get it on the 360 since it would be cheaper anyway so a Capcom buyout doesn't really hurt me. I've never been into Mega Man and I'm not greatly interested in DMC so meh. Plus, I'd love to see GAF suicide, especially if the PS3 version of DMC4 was cancelled like next week.
Yet the more logical, sane part of me believes this would be good for Capcom and bad for the industry. Capcom seems to be having a lot of success with the next gen, especially when compared to other Japanese companies. But they're spending so much money on these games that eventually things won't go their way financially. MS would definitely help them by managing the money and keeping them out of the gutter.
The industry would definitely be hurt by this though. Capcom has done a great job being multiconsole (except on Nintendo consoles LULZ). They're been extremely fair to both MS and Sony with respect to handing out titles - DMC for Sony, Lost Planet for 360, RE5 for both. A MS buyout would mean many things that people don't seem to recognize.
-No more Mega Man DS games. Certainly I don't care about that personally - but guys like Drinky/MAF/Himuro/Willco/etc would. Mega Man would also be thrown into the 3D world again, and that probably wouldn't work. Maybe the 2D games would continue on XBLA but that's not guarenteed.
-No Wii support. I would love to see what Capcom could do on the Wii. They've worked wonders on the 360 and PS3 but the Wii seems left out as of right now. Whatever they have in the works for it no doubt rocks, but an MS buyout would kill it.
-Japan. How would Japan gamers react to this? DMC as a series has been on the downhill in Japan in terms of sales, but they would plummet on the 360.
-Monster Hunter PSP. It's been a huge money printer for Capcom recently but if MS buys them it'll disappear.
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