Microsoft showed an interest in buying both Bungie and Sega, according to a new report from The Verge. Details from an internal email show that Xbox head Phil Spencer approached Microsoft leaders about the potential SEGA acquisition. Writing CEO Satya Nadella and CFO Amy Hood to request approval for approaching Sega Sammy.
The deal, which is clear at this point never happened, would have been a move to acquire Sega Gaming Studios from Sega Sammy in an attempt to help accelerate the growth of Xbox Game Pass. In the 2020 email Spencer says that Sega has “built a strong portfolio of games across segments with global geographic appeal.” Acquiring them, Spencer believed, would give Xbox Game Pass a stronger collection of games to offer subscribers.
The email doesn’t mention any specific studios by name. But Sega has a number of studios responsible for some extremely popular franchises. Atlus, which makes the Persona series of RPGs, as well as Ryo Ga Gotoku Studio responsible for the famed Yakuza (now Like A Dragon) series. As well as first-party content like Sonic The Hedgehog.
Both Bungie and Sega were key targets for Microsoft alongside others
The state of Bungie now being a Sony-owned studio has led to a huge injection of money allowing Bungie to expand on its franchise offerings. But the acquisition could have gone a very different way. A slide from a 2021 internal review document shows that Microsoft was still very much interested in acquiring Bungie and Sega. Listing both as key targets for the company.
These were alongside other potential studios like IO Interactive, Zynga, Niantic, and Supergiant Games. It isn’t clear if Microsoft still has interest in acquiring any of the companies aside from Bunie that were listed. Though even if interest is there Microsoft’s full attention is no doubt on Activision Blizzard. The company has been trying to acquire the Call of Duty and Diablo IV publisher for more than a year. With regulatory talks continuing amidst pushback from the UK’s Competition and Markets Authority and more recently, the FTC in the US.