Microsoft's Acquisition Ambitions Exposed: Why Did Xbox Want To Buy SEGA?

Newly revealed evidence in the ongoing legal battle between the Federal Trade Commission (FTC) and Microsoft Corp.'s MSFT acquisition of Activision Blizzard Inc ATVI shed some light on the tech giant's strategy.

Internal documents revealed Xbox's interest in acquiring Sega Sammy Holdings Inc - ADR SGAMY, along with a watchlist of other candidates, IGN reported.

See Also: SEGA Contemplates $70 Game Prices: What's Driving Video Game Cost Increases?

Outlined in the document are strategic recommendations to address Xbox's "content gaps" in mobile development, with a focus on acquiring franchises with "strong communities and deep engagement" and "casual, social, and cross-generational 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," Xbox's head Phil Spencer wrote in an email to Microsoft's CFO Amy Hood and CEO Satya Nadella.

Meanwhile, Microsoft General Manager David Hampton responded to this email by saying: "Game on."

The email, dated November 2020, left uncertainty surrounding the eventual outcome or progress of Spencer's pursuit of Sega.

Other developers Xbox considered buying were Thunderful, Supergiant Games, Niantic, Playrix, Zynga (which was bought by Take-Two Interactive in 2022), Bungie, IO Interactive and Scopely.

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Photo by Jonathan Kemper on Unsplash