In recent years, Xbox has made some massive additions to its lineup of first-party studios, including renowned developers like Obsidian and Bethesda. However, some leaked court documents are shedding light on the fact that Microsoft wanted Sega and Bungie under its wing. These plans came out due to the ongoing litigation involving the U.S. Federal Trade Commission’s opposition to Microsoft’s bid to acquire Activision Blizzard. Central to these acquisitions is the Xbox Game Pass, which Phil Spencer consistently highlights as a crucial aspect of the company.
Microsoft has been engaged in hearings with the FTC, which filed a motion to block Xbox’s acquisition of Activision Blizzard in June 2023. The proposed deal had already faced resistance from antitrust regulators in the U.K. earlier in the year. The intensity of the situation is expected to escalate further once Microsoft’s appeal process against the block commences in July. On the other side, the FTC argues that the deal would grant Xbox the capability to undermine competition in many ways.
Disclosed Documents Mentioning Microsoft Interested In Bungie & Sega
With the initiation of Microsoft’s FTC hearings, official court documents were disclosed. They unveiled the company’s plans to expand Xbox Game Studios through the potential acquisitions of Sega and Bungie in 2020. These documents included excerpts from an email sent by Phil Spencer to Microsoft CEO Satya Nadella and CFO Amy Hood.
Outlining the benefits he envisioned from these acquisitions and seeking permission to approach Sega with a proposal. However, it remains uncertain whether Spencer officially reached out to executives at Sega or Bungie to discuss the possibility of joining Xbox Game Studios.
News came out at the time that Microsoft was going after Bungie but didn’t pick up any traction. Some even claimed that the news was entirely false.
In the case of Sega, Spencer put forth the argument that the extensive portfolio of IPs held by Sega would significantly augment the catalog of titles available on Game Pass. He said that the addition of region-specific content, such as game franchises well-known in Japan, would make the service more appealing to Asian markets.