Microsoft Considered Buying Sega, Niantic, and Bungie

Microsoft, a leading tech giant, has been exploring potential acquisitions in the gaming industry over the past few years. Internal documents from Microsoft’s ongoing hearing with the Federal Trade Commission, related to its acquisition of Activision Blizzard, have revealed the company’s interest in acquiring Sega, Bungie, and Niantic. Microsoft’s aim was to strengthen its popular Game Pass service and expand its gaming audience further.

Table of Contents

1. Introduction
2. Microsoft’s Interest in Sega
3. Other Potential Acquisitions
4. Focus on Mobile Gaming
5. Conclusion
6. FAQs (Frequently Asked Questions)

Introduction

In recent years, Microsoft has been actively seeking opportunities to enhance its presence in the gaming industry. The company recognizes the importance of strategic acquisitions to bolster its Game Pass subscription service and broaden its reach among gamers. Internal documents shed light on Microsoft’s interest in acquiring Sega, Bungie, and Niantic, among other gaming companies.

Microsoft’s Interest in Sega

One of the major potential acquisitions that Microsoft explored was Sega, renowned for its iconic game franchise, Sonic the Hedgehog. In a November 2020 email, Phil Spencer, the head of Xbox, sought strategy approval from Microsoft CEO Satya Nadella and CFO Amy Hood to approach Sega for a potential acquisition. Spencer stated that Sega’s well-balanced portfolio of games with global appeal would accelerate Xbox Game Pass, both on and off-console. However, due to Sega being a publicly-traded Japanese company, there were complexities involved in any potential deal. The outcome of the discussions between Microsoft and Sega remains undisclosed.

Other Potential Acquisitions

Apart from Sega, Microsoft considered several other companies for potential acquisitions. Internal documents from 2021 revealed Bungie, the developer of the popular game franchise Destiny, as one of the targets. However, Bungie had already been acquired by Sony in 2022, making Microsoft’s pursuit of the company unsuccessful. The documents also mentioned Niantic, the developer of the immensely successful augmented reality game Pokemon GO, as well as mobile game giant Zynga, Supergiant Games, and IO Interactive.

These companies were identified as potential acquisitions that would support Microsoft’s goal of expanding its audience. Some of them, like Bungie and IO Interactive, were also seen as bringing engagement and social interaction opportunities to the table. Microsoft recognized the popularity of Destiny on Game Pass, considering it one of the most-played games in terms of hours invested by players. Acquiring Bungie would have provided Microsoft not only with valuable intellectual property and a passionate community but also with the ability to integrate the studio’s live operations infrastructure into Xbox Game Studios.

Focus on Mobile Gaming

Microsoft’s interest in mobile gaming was also evident from the internal documents. The company highlighted the significance of mobile game company King, which is part of Activision Blizzard, as a key factor behind the pending $69 billion acquisition. While it remains uncertain whether Microsoft engaged in serious discussions with other mobile game companies, these documents suggest that the company has been eyeing various mobile gaming companies for several years.

Conclusion

Microsoft’s consideration of acquiring Sega, Bungie, and Niantic reflects its determination to strengthen Game Pass and expand its gaming audience. While the outcome of these potential acquisitions remains unknown, the internal documents provide insights into Microsoft’s strategic vision for the gaming industry.

FAQs (Frequently Asked Questions)

1. Did Microsoft acquire Sega?
No

official confirmation or details regarding Microsoft’s acquisition of Sega have been disclosed. The documents only indicate that Microsoft explored the possibility of acquiring Sega.

2. Why did Microsoft consider acquiring Bungie?
Microsoft saw Bungie, the developer of Destiny, as a valuable addition to its gaming portfolio. Destiny’s popularity on Game Pass made Bungie an attractive target, but the company had already been acquired by Sony.

3. What is Microsoft’s focus on mobile gaming?
Microsoft recognizes the importance of mobile gaming and has shown interest in mobile game companies. The pending acquisition of Activision Blizzard, which includes mobile game company King, highlights Microsoft’s commitment to the mobile gaming market.

4. Will Microsoft’s potential acquisitions affect Xbox Game Pass?
If successful, these acquisitions would likely have a positive impact on Xbox Game Pass. The addition of new gaming companies and intellectual properties would further enhance the value and variety of the Game Pass subscription service.

5. When can we expect The Elder Scrolls VI?
According to statements made during the ongoing FTC hearing, The Elder Scrolls VI is expected to be released at least five years from now, indicating a longer development timeline for the highly anticipated game.

Please note that the information provided in this article is based on internal documents and should be treated as speculative until official announcements are made by the companies involved.