Microsoft Was Looking at Acquiring Sega, Bungie to Expand PC and Xbox Game Pass Offerings

Alongside acquiring big companies like Bethesda and the current attempt at acquiring Activision Blizzard, Microsoft was also looking at acquiring smaller companies Sega and Bungie, according to internal documents released as part of the ongoing Federal Trade Commission hearing.

According to The Verge, Xbox boss Phil Spencer had written to both Microsoft CEO Satya Nadella as well as CFO Amy Hood about potentially acquiring Sega’s gaming studios from parent company Sega Sammy. The goal with the acquisition was to bolster the growth of PC and Xbox Game Pass in Asia.

“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,” said Spencer to Nadella and Hood.

If Microsoft had pursued the acquisition of Sega, it would have picked up rights to several franchises on both PC and consoles, including the Total War series, as well as the Like a Dragon and Sonic franchises, not to mention everything developed by Sega-owned Atlus, including Persona and Shin Megami Tensei.

Bungie, on the other hand, was look at for the Destiny IP, as well as the game’s community. The studio’s experience with an ongoing live service title would have also likely played a major part in the acquisition. Bungie has since been acquired by Sony, and is working closely with other PlayStation Studios to help with Sony’s live service ambitions.