Microsoft Was Serious About Acquiring Sega, Bungie, And Other Gaming Studios For Xbox Game Pass Subscriptions

The ongoing hearing to address the US FTC's concerns with Microsoft acquiring Activision Blizzard have been revealing several interesting insider information. Microsoft has disclosed how it was seriously considering buying Sega and Bungie, two of the biggest game developers and publishers for its Microsoft Xbox Game Pass subscriptions.

Microsoft isn't hiding its ambitious plan of going big in the world of Cloud Gaming. After revealing how it sacrificed computing power and sales of its popular Xbox Series X|S, the company has now revealed how it was serious about pursuing Sega Sammy and several other game developers and publishers.

Microsoft Wanted Sega, Bungie, Zynga, and IO Interactive For Xbox Game Pass

According to internal documents from the ongoing FTC v. Microsoft hearing, Microsoft was looking at acquiring multiple game developers and publishers to bolster its Xbox Game Pass subscription.

Specifically, Xbox chief Phil Spencer emailed both Microsoft CEO Satya Nadella and Microsoft CFO Amy Hood, requesting strategy approval to approach Sega Sammy over a potential acquisition of its Sega gaming studios.

"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."

"The global appeal of Sega's beloved IP will help expand Xbox Game Pass's reach to new audiences around the world, most notably in Asia, where localized content is critical to success."

It goes without saying that global game publisher Sega has enjoyed decades of loyalty and popularity from millions of gamers. Adding game titles from Sega would invariably boost the appeal and subscriptions of the Microsoft Xbox Game Pass.

In fact, Microsoft believed a Sega acquisition would drive Xbox Game Pass subscriptions across PC, console, and cloud, the disclosed court document revealed. Sega would also offer game transactions value for monetization opportunities in the future, Spencer claimed.

Apart from Sega, owned by Sega Sammy, Microsoft had identified key areas for PC, mobile, and console acquisitions across different markets. Game publishers with popular titles, such as Bungie, Thunderful, Supergiant Games, Niantic, Playrix, Zynga, and IO Interactive were part of a list of companies Microsoft was seriously looking at acquiring.

Microsoft hasn't revealed if its CEO greenlit the talks for acquiring Sega. However, it appears the company was quite serious about quickly picking up game development studios and publishers before the competition scooped them up. Incidentally, that's precisely what happened with Bungie, which is now owned by Sony.