Home Gaming Microsoft Contemplated Acquiring Bungie and Sega to “Fast-track” Game Pass Growth

Microsoft Contemplated Acquiring Bungie and Sega to “Fast-track” Game Pass Growth

In 2020, court documents revealed that Xbox leadership at Microsoft had expressed interest in acquiring Sega. Along with Sega, other studios such as Bungie, IO Interactive, and Niantic were also on their “watchlist” of potential acquisition targets.

Currently, Microsoft is facing a legal battle over its proposed £50 billion acquisition of Activision Blizzard. The U.S. Federal Trade Commission (FTC) is opposing the deal and seeking to block it.

As part of the case, internal emails from Microsoft have been brought to light. One email, sent by Xbox head Phil Spencer in 2020, requested approval to approach Sega Sammy about the possibility of acquiring their Sega Gaming studios. In the email, Spencer expressed his support for the acquisition, citing the benefits it would bring to Xbox’s Game Pass service.

The court documents also revealed Microsoft’s “final watchlist” from 2021, which included other potential acquisition targets. This list featured Bungie, the developer of Destiny 2 (currently owned by Sony), as well as Zynga, a mobile gaming giant that was acquired by Take-Two Interactive for £9.3 billion the previous year.

The document also listed Niantic, the creator of Pokémon Go, Supergiant Games (developer of Hades), and IO Interactive (developer of Hitman) as potential acquisitions. In addition, mobile developers Playrix and Scopely, along with Thunderful, the publisher behind games like Cursed To Golf, The Gunk, and Planet Of Lana, were included on the list.

It is unclear what ultimately happened with these potential acquisitions. However, Thunderful, one of the companies listed, recently stated that working with Xbox and Microsoft has been crucial to their go-to market strategy for Planet Of Lana.

Overall, these court documents provide insight into Microsoft’s past and potential future acquisitions in the gaming industry.

 

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