Microsoft and Nokia were already co-operating closely with Lumia and Windows Phone, but apparently Microsoft felt they needed to bring it in-house picking up Nokia's phone business for a reported $7.2 billion (£4.63 billion). Apart from the phone division (32,000 employees) Microsoft will also be getting a bunch of patents and licenses for Nokia technology.
A number of Nokia executives including former Microsoft executive and Nokia CEO Stephen Elop will also jump ships. Microsoft will also be building a datacenter in Finland.
Nokia will now focus their attention on network solutions and tele communication infrastructure.
What it means to gamers? Well, it underlines Microsoft's commitment to the Windows Phone platform.