"GigaOm on why Microsoft may be attracted to the company other than for its consumer attributes. He said: "The deal's big sticker price is intriguing - leading me to believe that Microsoft wants to pull an Xbox on its mobile phone business.
"Some of their sources got back to them today with the same message. With Nokia's N-Gage making a comeback and Sony PSPs developing a following, Microsoft was looking for a handheld gaming competitor for its Xbox brand. Also, as GigaOm mentioned, Danger's server approach would let Microsoft compete effectively with Google's Android system. Microsoft didn't rule the possibility out, explaining in the release: "Combining these services with Microsoft's connected entertainment and experiences technologies, including MSN, Xbox, Zune, Windows Live and Windows Mobile, will provide Microsoft with the tools to accelerate its work to create industry-leading entertainment and communication experiences for consumers." writes Tricia Duryee.