FTC’s legal battle to stop Xbox from acquiring Activision Blizzard continues on this week, and while the trial is off for today, a rash of evidence documents appeared online during the break that have brought to light some interesting clues about who all Xbox is interested in acquiring. Namely: Sega.
An internal Xbox document submitted as evidence in the ongoing trial shows the company’s acquisition strategy as of May 2021. The document begins by recommending multiple acquisitions to fill perceived content gaps in mobile development as well as “franchises with strong communities and deep engagement” and “casual, social, and cross-generational franchises.”
The presentation suggests Xbox first compiled a list of 100 developers based on multiple criteria, then narrowed it down to eight final candidates:
ThunderfulSupergiant GamesNianticPlayrixZyngaBungieIO InteractiveScopely
Other developers of note that almost made the final list include Behaviour Interactive, Housemarque (acquired by Sony in 2021), Remedy Entertainment, Larian Studios, Rebellion Developments, and Paradox Interactive.
But it looks like Xbox got especially close on one developer in particular: Sega.
According to an email similarly entered into evidence, Xbox head Phil Spencer specifically went to Microsoft CFO Amy Hood and CEO Satya Nadella to request approval to approach Sega and acquire its gaming studios (notably not including the rest of its business units). “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.”
Microsoft GM David Hampton simply replied, “Game on” to this email.
The email is dated November of 2020, so it’s unclear why, when, or even if Spencer’s plan to pick up Sega fell through. We can glean from the profile Xbox compiled on the studio that it saw investment in the company from Nexon as a complicating element in the process, as well as complications from Sega’s other business verticals. However, its PC-centric content (Total War and Footbal Manager), as well as Relic Entertainment, Yakuza, Endless Dungeon, and of course Sonic, were major draws.
The presentation includes a full breakdown of 17 companies (and possibly an 18th, entirely redacted one) that Xbox was seriously considering, including discussion of their upcoming games, involved risks, and other facts. Some interesting tidbits from this section include mention of Bungie’s mysterious “Matter” IP, and seeming confirmation that IO’s new fantasy shooter is in fact the rumored “Project Dragon” in the works for Xbox and PC.
You can check out our daily roundups right here on IGN for updates on everything happening in FTC v. Microsoft, day by day, as well as catch up on our detailed analysis of day one and day two of the trial before it reconvenes tomorrow.
Rebekah Valentine is a senior reporter for IGN. You can find her on Twitter @duckvalentine.
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