Internal emails reveal Microsoft considered acquiring Bungie and Sega to promote Xbox Game Pass

Microsoft was considering acquiring both Bungie and Sega, according to internal documents FTC vs Microsoft Hearing. In an email viewed by ledgeXbox chief Phil Spencer wrote letters to both Microsoft CEO Satya Nadella and Microsoft CFO Amy Hood, requesting strategy approval to approach Sega Sammy on a possible acquisition of its Sega gaming studio.

In a November 2020 email, Spencer said, “We believe Sega has built a well-balanced portfolio of games across all segments with global geographic appeal, and we’re excited to see Xbox Game Pass available both on and off-console.” Will help speed it up.”

Microsoft believed that the Sega acquisition would lead to increased Xbox Game Pass subscriptions across PC, console, and cloud. “The global appeal of Sega’s beloved IP will help Xbox Game Pass expand its reach to new audiences around the world, especially in Asia, where localized content is critical to success,” Spencer said in his pitch to Nadella and Hood at the time. I said Sega will also provide game transaction value for future monetization opportunities.

It is unclear what happened with the Sega acquisition and whether Nadella ultimately approved of the negotiations. But in Microsoft’s internal April 2021 merger review document, Sega was still listed as a major target. Microsoft had identified key areas for acquisition in various markets across PC, mobile and console, and Sega, Bungie, Zynga and IO Interactive were among the many companies Microsoft was seriously considering acquiring.

Bungie, now a Sony-owned studio, was on the list, with Microsoft stating in an internal document that “Bungie’s acquisition involved securing valuable IP, Destiny (and its community) and its development and live integration into Xbox Game Studios.” Ops will involve integration of infrastructure.” , Microsoft had identified a “high burn-rate” risk for Bungie in 2018 with a $100 million minority stake investment of NetEase. also noted destiny was one of the “longest generating titles on the console Game Pass”.

hitman Developer io Interactive was also on the “Ultimate Watchlist” for 2021, along with mobile companies like Thunderful, Supergiant Games, Niantic, Playrix and Zynga. Microsoft was in talks to acquire Zynga before eventually turning its attention to Activision Blizzard for its mobile ambitions (Zynga was eventually acquired by Take-Two). It’s unclear whether Microsoft has had any talks with other mobile-focused companies.