Microsoft is expanding its gaming division through the acquisition of various studios. The gaming giant has already acquired companies like Ninja Theory, Bethesda Softworks, and more.

Following these acquisitions, Microsoft is currently attempting to buy Activision Blizzard for $68.7 billion. This will provide Microsoft ownership of IPs such as Call Of Duty, Diablo, and Overwatch.

However, Microsoft has considered acquisitions for multiple studios in the past, and a new document reveals that it wanted to buy Sega and Bungie in 2020.

Why it matters: Acquisitions have become a popular trend in the gaming industry. Both PlayStation and Xbox are increasing the number of first-party developers through various mergers.

Microsoft Xbox Sega Acquisition
Source: Microsoft Email via The Verge

Sega’s acquisition would add a new variety of IPs to Microsoft’s first-party library. This includes IPs like Sonic, Yakuza, and Persona.

These games would also prove beneficial to Xbox Game Pass, providing a more diverse library of games on the subscription service. Over the last few years, Microsoft has already established a great relationship with Sega.

The Japanese gaming giant has released various titles on Game Pass, also becoming a significant part of recent Xbox events. On the other hand, Bungie has previously collaborated with Microsoft on the Halo franchise.

Microsoft was hoping to secure IPs like Destiny, but Bungie is now owned by PlayStation.

The emails further reveal that Microsoft is unlikely to be done with acquisitions after Activision Blizzard. In 2021, Xbox also had its eyes set on companies like Niantic and IO Interactive. Microsoft could pursue these ambitions once again in the coming years.

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Malik Usman
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