News recently broke that Microsoft might acquire Epic Games, the makers of high impact series Unreal Tournament and developers of console macho hit Gears of War. Travis Moses, assistant editor at game magazine GamePro, wrote: "Microsoft will buy Epic Games for $1 billion this summer" in the new issue of the magazine. Speculations were further enhanced when it was announced that, at this year's Game Developers Conference, the two companies will be exhibiting their newest stuff side by side, while Epic is set to make an important announcement.

The main reason for a buyout of Epic by Microsoft seems to be the Unreal games engine, used in a number of successful titles, which could bring Microsoft two things: first, a steady flow of revenue derived from all the games that use the Unreal engine, and second, a technologically advanced and stable platform on which to develop games on. The game division of Microsoft has already worked with Epic Games to create Gears of War and the collaboration has proved very profitable for both. Microsoft might be looking for a replacement for developer Bungie, creators of the Halo series, which have become separated from Microsoft in October 2007, after being acquired in 2000.

Both Microsoft and Bungie have denied comments up until now. But there seems to be some truth to the rumors, as the initial price tag of 1 billion was thought by some to be too low. Mark Rein, vice-president of Epic, commented that any negotiations related to Epic would begin at the sum of 2 billion dollars. He remarked that he said 2 billion dollars because: "We don't want anyone thinking that we're cheap". Joke or no joke, it just serves to add fuel to the rumor fire.

We'll be looking forward to the Game Developers Conference for further news regarding this potential deal.