Microsoft’s Interest in Acquiring Sega and Bungie

Microsoft wanted to buy Sega and Bungie

Sega and Bungie were identified as potential takeover targets by Microsoft, according to internal documents revealed in the US antitrust lawsuit against the Activision takeover. Xbox chief Phil Spencer proposed the purchase of Sega in 2020, stating that the company had a balanced portfolio of games that would accelerate Xbox Game Pass. Sega’s brands include “Sonic,” “Yakuza,” and “Football Manager.” The proposal suggested that Sega games would continue to be released cross-platform. It is unclear why Microsoft ultimately decided against acquiring Sega. Other possible acquisitions included Zynga, Niantic, Supergiant Games, I/O Interactive, and Bungie.

Bungie’s case is of particular interest, as it was previously owned by Microsoft from 2000 to 2007 and developed the popular “Halo” shooter. In 2022, Sony secured Bungie for $3.6 billion, making it a competitor to Microsoft. Sony, Microsoft’s biggest adversary in the planned Activision Blizzard takeover, supports antitrust authorities’ efforts to prevent the deal. Sony is concerned that Microsoft may publish exclusive games for PC and Xbox consoles, disrupting the console market. However, an email from Sony’s Playstation boss, Jim Ryan, suggests otherwise. Ryan stated that Microsoft’s planned acquisition of Activision is not just about exclusive games and that “Call of Duty” will still be available on Playstation. Microsoft has reassured Sony that “Call of Duty” titles will continue to be offered on Playstation. The court hearings, scheduled to run until June 29, will include testimonies from Satya Nadella (Microsoft CEO) and Bobby Kotick (Activision CEO).

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