Microsoft considered buying Sega, Bungie, and more studios for Xbox

Microsoft previously considered purchasing Sega, Bungie, IO Interactive, and several other big studios and game companies, newly-uncovered internal documents reveal.

As part of Microsoft's ongoing FTC trial, a new email from November 2020 has been uncovered that shows Microsoft was keen to approach several games studios about potential acquisitions, including Sonic owner Sega.

Microsoft looked at acquiring Sega to help "accelerate Xbox Game Pass"

Microsoft eyed up purchasing Sega, Bungie, and many more studios

Xbox boss Phil Spencer wrote to Microsoft CEO Satya Nadella and CFO Amy Hood requesting approval to approach Sega Sammy "regarding a potential acquisition of their Sega gaming studios." In the email, as seen by The Verge, Spencer said that Sega has built "a well-balanced portfolio of games across segments with global geographic appeal" and that acquiring Sega's gaming portfolio would "help us accelerate Xbox Game Pass both on and off-console."

Later in the email, Spencer added: "Sega is the most attractive next acquisition target due to its global PC catalog, presence on mobile in Asia, and global brand affinity on console through its classic IP."

It's unclear if Nadella approved Spencer's request to approach Sega, but in an internal Microsoft merger and acquisitions document from 2021, Sega was still a key target. The following companies also appeared on Microsoft's "Final Watchlist" of potential acquisitions:

Thunderful
Supergiant Games
IO Interactive
Niantic
Playrix
Zynga
Bungie
Scopely

Of course, in the cases of Bungie and Zynga, Bungie was acquired by Sony in 2022, and Zynga ended up merging with Take-Two.

Microsoft's FTC trial has also revealed that The Elder Scrolls 6 won't launch until 2028 at the earliest, Sony uses revenue from Xbox games sold on its platform for exclusivity deals, according to Phil Spencer, and Microsoft purchased Bethesda to prevent Starfield from becoming a PlayStation exclusive.

Industry News

Written by Sean Carey

With a deep love for Xbox and achievements, Sean has committed to playing the best RPGs, racing games, and first-person shooters Xbox Game Pass and his precious free time will allow. Prior to joining TrueAchievements, Sean gained a degree in journalism from Solent University.