Xbox Internal Documents Show Company Considered Buying Sega, Other Major Studios
Newly released internal documents from Xbox have brought numerous facts to light, including that the company was eyeing numerous major studios for acquisition, most notably Sega, as first reported by IGN.
The documents were released online as part of the proceedings of the ongoing trial between Microsoft and the FTC over the proposed acquisition of Activision Blizzard. The submitted evidence includes internal memos, emails, and other documents.
One of the submitted emails, dated to November 2020, shows Xbox head Phil Spencer directly approaching Microsoft CFO Amy Hood and CEO Satya Nadella to request their approval for Xbox to pursue acquisition of Sega’s 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,” Spencer said in the email.
It is not known why plans to acquire Sega never materialized. Later, in a presentation dated to May 2021, plans for mergers and acquisitions were outlined. The company had identified over 100 studios, including Sega, as possible targets for acquisition, with the goal being to address gaps they had identified in the company’s business model. These gaps included needs to diversify software output, further expand presence on PC and mobile, developing more technical skills and assets, and expanding social engagement.
Based on a variety of criteria, the presentation explains that Xbox narrowed down their list to eight studios which would best address these issues if acquired. These studios were Thunderful, Supergiant Games (Hades), Niantic (Pokemon GO), Playrix (Homescapes), Zynga (Words with Friends), Bungie (Destiny 2), IO Interactive (Hitman), and Scopely (Star Trek Fleet Command). None of these studios have currently entered public acquisition talks with Microsoft, with Bungie since even being acquired by Sony.
Details about the companies in question included later in the presentation also shed some light on some potential upcoming projects from them. For Bungie, the document contains references to a new IP with an expected release in 2025, to be developed by Bungie’s new Amsterdam studio. The document notes that Bungie trademarked the title “Matter,” in 2018, which could be the new IP in question.
Details regarding IO Interactive in the presentation seemingly confirm the existence of Project Dragon, an unannounced RPG shooter in development for PC and Xbox Series X and S, which had previously been rumored elsewhere.