Leaked internal documents from the highly publicised FTC v. Microsoft hearing have revealed Microsoft was looking to acquire both Bungie and Sega. In an email Xbox chief Phil Spencer reportedly wrote to Microsoft CEO Satya Nadella and Microsoft CFO Amy Hood, asking for a strategy approval to approach Sega Sammy Holdings over a potential acquisition of Sega gaming studios, which is behind Sonic the Hedgehog, Shin Megami Tensei, Yakuza, Football Manager and other large franchises.
“We believe that Sega has built a well-balanced portfolio of games across segments with global geographic appeal, and will help us accelerate Xbox Game Pass both on and off-console,” said Spencer in the email interaction which happened in 2020. The docs also show that Spencer was “supportive” of the purchase due to the perks it would offer Xbox’s Game Pass service across PC, console, and cloud.
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Sega Was One of the 12 Gaming Acquisitions Microsoft Had Been Eyeing
“The global appeal of Sega’s beloved IP will help expand Xbox Game Pass’s reach to new audiences around the world, most notably in Asia, where localized content is critical to success,” said Spencer in his pitch to Nadella and Hood. Another American video gaming platform Bungie was also seemingly on Microsoft's list. The “acquisition of Bungie will include securing valuable IP, Destiny (and its community) and integration of its dev & live ops infrastructure into Xbox Game Studios,” the documents read.
Bungie was acquired by Sony Interactive Entertainment early this year, two weeks after Microsoft struck a $68.7 billion deal for Activision Blizzard, the Call of Duty and Candy Crush maker. The hearing to determine the fate of the deal is likely to take place soon. Though the acquisition has been approved by more than 40 countries, the United Kingdom has blocked the deal as it believes that it can lead to Microsoft enjoying a monopoly in the cloud gaming industry.