Yup it's true they have announced a reboot of Flight simulator called simply Flight, and Age Of Empires Online. Who knew they still made games for Windows I thought it was just Xbox stuff now.

Unfortunately they do not make games for Windows. They make Games for Windows Live.

Microsoft making PC games is a blatant lie and unsustainable rumor coming from their competitors, trying to bad-mouth them.

Yes, it's very strange. They recently announced a PC version of Fable III as well. That's three games in one year. Hopefully this is just the beginning. :)

4 dungeon siege 3 was announced, they own that property aswell

Except for the fact that the game is not in Microsoft's hands anymore.
"developed by Obsidian Entertainment and published by Square Enix" ;)

yeah thats the bit i find odd the first ones were developed for microsoft and they are well known for requireing the property be theirs...

Age of Empires was made by an actual studio (Ensemble Studios) which MS bought somewhere along the way. MS certainly owns the IP. It's up to you whether you want to call that "making games" or not:)
On the other hand, MS has done some cool things with some of their PC games. There's the much maligned free release of Mechwarrior 4 (announced a couple times, I think some detail wrangling is still going on) and when they shut down Allegiance they released the server source code to the community so they could keep the game going if they wanted.
Does the new AOE have The Goths? That is all I need to know.

from whats been said it's first phase is greek city states where your city grows and evolves both while you play and while your offline (ie at the begining you found a city from that point on your battles influence your home city)

Microsoft was only responsible for the first two games. After that they seem to have lost any control they might have had; Dungeon Siege II's expansion and the PSP game were both published by 2K, and Square Enix then somehow acquired the rights to the series as of Dungeon Siege III.

Well, I'll be damned. They're not totally letting go of the Flight Simulator franchise after all.
But if I were to be truly satisfied with Microsoft and PC gaming, they'd bring back some of the true SideWinder peripherals to go with it, perhaps even improve them. No, I'm not talking about their keyboards and mice.
I didn't understand for a long, long time, but when I first used the SideWinder Force-Feedback 2, it became very apparent why that stick had such a diehard following. Now imagine a newer version with proper driver support and far more controls beyond the basic four axes, eight buttons, and one hat switch...
Anyway, Microsoft would be foolish to completely neglect PC gaming. It's the only thing that ties me to Windows, I'm certain that I'm not alone there, and they probably know it too.

"published by Square Enix after it acquired the complete ownership of the Dungeon Siege franchise."
I think this makes it clear. ;)

Fixed?!

Fixed indeed.

Only if your name happens to be Donald Rumsfeld.