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Microsoft had set its sight on two legendary behmoths “Bungie and Sega” to boost the Xbox Game Pass as per the internal reports.



Microsoft Sega Bungie

A leaked, Microsoft document unveils the company’s future strategic objectives for gaming acquisition

According to recently disclosed internal documents from the FTC v. Microsoft hearing, it has come to light that Microsoft had expressed interest in acquiring two prominent entities in the gaming industry, namely Bungie and Sega. The documents reveal that Xbox chief, Phil Spencer, corresponded with Microsoft CEO Satya Nadella and Microsoft CFO Amy Hood via email, seeking their approval and outlining a proposed strategy to approach Sega Sammy regarding a potential acquisition of its Sega gaming studios

In the email, Phil Spencer expressed his belief that Sega has successfully cultivated a diverse and well-rounded portfolio of games that cater to various segments of the gaming market, thereby generating global geographic appeal. He further asserted that the acquisition of Sega would serve as a catalyst to expedite the growth of Xbox Game Pass, both on and off-console, thereby enhancing the overall gaming experience for Xbox users.

The email, dated November 2020, sheds light on Microsoft’s strategic outlook and the recognition of Sega’s potential value as a key player in the gaming industry. Microsoft’s interest in acquiring both Bungie and Sega underscores its commitment to bolstering its presence in the gaming market and solidifying its position as a leader in the industry.

Microsoft still eyes the Sega.

Microsoft saw the potential of acquiring Sega as a strategic move to bolster its Xbox Game Pass subscriptions across various platforms, including PC, console, and cloud. Recognizing the worldwide appeal of Sega’s cherished intellectual properties (IP), Microsoft aimed to leverage these assets to expand the reach of Xbox Game Pass, particularly in the critical Asian market where localized content plays a pivotal role in achieving success. By incorporating Sega’s iconic game titles into their portfolio, Microsoft anticipated attracting new audiences from diverse regions.

While the outcome of the Sega acquisition remains undisclosed, it is worth noting that the internal merger review document of Microsoft, dated April 2021, still identified Sega as a prominent target. This indicates that Microsoft had actively been exploring the possibility of acquiring Sega, alongside other notable companies like Bungie, Zynga, and IO Interactive. These potential acquisitions were part of Microsoft’s comprehensive strategy to target key areas, including PC, mobile, and console, in various markets.


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