The 56-page alleged leaked Microsoft document has given us a fascinating look into what might be the next generation of Xbox hardware, but Ars Technica has also spotted a sign that Microsoft wanted to buy out the OnLive streaming games service. In a list of "threats" to the Xbox 720, the document's creators said that OnLive could "up-end the console gaming market by making expensive consoles and PCs unnecessary for AAA gaming." If it partnered with a carrier like AT&T, it could even produce cheap subsidized hardware.
According to notes on the downloadable version of the presentation on Scribd (not in the online version), Microsoft considered OnLive a "potential acquisition target" for these reasons. All signs point to this being written in August 2010, well before OnLive expanded its hardware line and signed its deal with smart TV provider LG, so any buyout today would take place in a very different landscape. That said, we're curious just how far Microsoft went in considering the acquisition.