Microsoft considered acquiring Sega in 2020, reveals FTC hearing

The company believed acquiring Sega would help it "accelerate Xbox Game Pass both on and off-console"

Microsoft was reportedly looking to acquire Japanese video game developer and publisher Sega back in November 2020.

The information was revealed in an internal email unveiled during the FTC vs Microsoft hearing, as shared by The Verge.

The internal emails were written between Xbox CEO Phil Spencer, Microsoft CEO Satya Nadella and Microsoft CFO Amy Hood and talked about Microsoft’s ambitions to expand its gaming portfolio and strengthen the Xbox Game Pass platform. “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,” said Spencer in the email.

Spencer added that Sega seemed the be the most attractive acquisition target, owing to its global PC catalogue, presence on mobile in Asia, and “global brand affinity on console through its classic IP.”

While the outcome of talks with Sega remain undisclosed, Microsoft’s interest in expanding its gaming portfolio and strengthening Xbox Game Pass and its cloud gaming is evident.

As revealed in other internal emails that came to light during the FTC vs Microsoft hearing, Microsoft has reportedly been losing out on Xbox Series X/S sales due to a tradeoff it made by investing in its cloud and gaming content. Read more about it here.

Source: The Verge