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Microsoft Plans to Boost Xbox Game Pass with Acquisition of Sega and Bungie

HomeReportsReportsScience and TechnologyThursday, June 29, 2023 – 9:53 am

An internal FTC v. Microsoft document stated that the company was planning to boost its game offering in Xbox Game Pass to take on Sony PlayStation, and the main takeaway from the document is that the company was planning to acquire both Bungie and Sega.

The email sent by Xbox chief Phil Spencer to Microsoft CEO Satya Nadella and CFO (seen by The Verge) stated strategic approval of approaching Sega’s Sammy over the acquisition of Sega’s game studios.

According to the email, Spencer wanted to approach Sega Sammy and mentioned that he and Bill Gates had reviewed the business case for the Sega acquisition and were both positive about the idea, adding, “We believe Sega has built a well-balanced portfolio of games across sectors with global geographic attractiveness, It will help us accelerate Xbox Game Pass both on and off the console.” The approach has been to expand the portfolio of games in the subscription model to offer more content to players, especially in Asian regions where players are more engaged with localized content.

This means that Microsoft was planning to acquire Sega in order to expand the Xbox Game Pass portfolio and accelerate subscription across all platforms including Xbox consoles, PC and the cloud.

The key date is November 2021 and it’s been nearly 20 months now, but, no news has been released on the whole acquisition idea yet. However, the internal email mentioned Sega as the top acquisition target. Also, it is still not clear whether or not the current CEO of Microsoft has approved of the idea of ​​acquiring Sega.

Aside from Sega, the list also includes Bungie, Zynga, and IO Interactive as acquisition targets.

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