Microsoft considered purchasing Square Enix to bolster Xbox Game Pass

By Sean Carey,

Newly-published documents from Microsoft's trial against the FTC have revealed that Microsoft considered purchasing Final Fantasy developer Square Enix back in 2019 to bolster Xbox Game Pass.

Just days after we learned that Microsoft considered snapping up Sega, Bungie, and several other key games companies, the Federal Trade Commission has published new evidence as part of its battle against Microsoft, revealing that Team Xbox was looking at purchasing Square Enix ahead of the launch of the Xbox Series X.

Microsoft considered Square Enix buyout in 2019

Microsoft considered purchasing Square Enix to bolster Xbox Game Pass

While most of the documents are heavily redacted, Microsoft says that acquiring Square Enix would not only give Xbox a better foothold in Asian markets, it "would provide valuable content assets that could accelerate the growth of Xbox Game Pass and drive success for Project Scarlett."

The document goes on to say that owning Square Enix's three core franchises (Final Fantasy, Dragon Quest, Tomb Raider) would help "differentiate our platform's key content offerings, and help drive adoption of Xbox Game Pass and Scarlett." Microsoft also notes that Square Enix's "extensive game library" would provide "Xbox Game Pass additional catalog depth to improve subscriber retention and broader genre coverage to attract new subscribers."

Interestingly, Microsoft also said that acquiring Square Enix would accelerate its mobile growth ambitions and that combining Square Enix's "robust mobile native portfolio with our own could potentially help us create a mobile-native Xbox Game Pass SKU."

As we know now, acquiring Square Enix didn't work out for Microsoft. Last year, Square Enix sold off its western studios and a catalog of IPs, including Tomb Raider, Deus Ex, Thief, and Legacy of Kain, in a $300 million deal to Embracer.
Sean Carey
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.
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