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Microsoft Considered Buying Sega to Fill out the Xbox Catalogue

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The legal battle between the Federal Trade Commission and Xbox Gaming Studios over the acquisition of Activision Blizzard is still ongoing, but it isn’t stopping Microsoft’s video gaming brand from dreaming bigger. Evidence documents have surfaced recently, pointing at the company’s plans to buy such prominent publishers as Sega.

The fate of Microsoft’s whopping US$70 billion acquisition of Activision Blizzard is hanging in the balance as a weeklong hearing started last Thursday, opposing the tech giant to the FTC, which hopes to curb the deal. Microsoft’s lead lawyer Beth Wilkinson declared that if a federal judge were to issue an injunction to postpone the deal’s completion, the company may completely withdraw from the agreement.

Xbox CEO Phil Spencer took the stand on the FTC trial’s second day to defend the proposed acquisition, which would result in Xbox owning franchises like Warcraft, Call of Duty, and Overwatch. But as the legal proceeding continues, an internal document submitted as evidence has just given outside observers some more grist to the conversation mill. Showing Xbox’s acquisition plans as of May 2021, the document divulges that the company has been eyeing multiple heavyweight studios to fill some of its perceived content gaps.

Aiming “cross-generational franchises” and popular series boasting “strong communities and deep engagement,” the head of Xbox requested permission from Microsoft CEO Satya Nadella to approach the legendary video game publisher Sega. Spencer emphasised the Japanese company’s presence in the PC gaming market and its leading position in the Asian mobile sector, a field that Xbox is only too eager to invest in. However, it is unclear at this stage whether this plan is still on the table.

Besides chasing Sega, the Xbox exec narrowed down eight more takeover prospects, including Niantic, Supergiant Games, and IO Interactive. The trial also revealed that the company could have snatched Bungie away from PlayStation. The studio behind such valuable franchises as Halo and Destiny was on Xbox’s radar, although the financial risk involved might have proven too steep even for the American giant.

The internal email disclosed during the trial exposed more information on Xbox’s past transactions. Ninja Theory featured prominently on that list. Acquired in 2018 alongside Undead Labs, Playground Games, Turn 10, and Compulsion Games, the British studio was reportedly bought for US$117 million. Responsible for developing an “independent AAA” business model, Ninja Theory made waves in the industry with the release of what has become its flagship title, Hellblade: Senua’s Sacrifice.

An unmitigated commercial success, this dark fantasy game shook up the action-adventure formula by introducing elements of psychological horror and working with neuroscientists to depict psychosis in a gripping yet mature way. Hellblade also played a central part in the renewed interest in Celtic and Nordic themes in the gaming sphere. From God of War: Ragnarök to Valheim, Norse mythology is in fashion.

The iGaming industry jumped on the Viking bandwagon too, with online games like Rise of the Valkyrie and Age of Vikings. And even newcomers can grab free spins to try more Norse-infused slots. Free spins are often part of welcome packages catered to users registering on a new platform for the first time. These bonus spins might also reward the loyalty of existing players in exchange for a small deposit. While some websites confiscate the winnings earned through bonuses, top platforms combine flexible withdrawal conditions and fast payout options. Nordic pokies can therefore alleviate the wait for Hellblade’s sequel, which is slated for release sometime in 2024.

Hellblade 2 could well be one of the most resounding success stories to come for Xbox. But before it comes out, Starfield might be the talk of the town for a long while. The regulatory drama surrounding Microsoft’s prospective Activision purchase even revealed that concerns about Starfield being a PS5 exclusive drove the company’s purchase of Bethesda Softworks parent studio ZeniMax.

Ironically enough, securing Xbox exclusive ownership of the much-anticipated sci-fi RPG plays straight into the FTC’s worries about the American giant gaining an unfair advantage by degrading its rivals’ access to popular content. And Sony isn’t too happy about this massive triple-A entry skipping its flagship console. The stakes are high in the legal feud opposing Xbox to the US regulator, thus. Aside from Sony, the merger could affect an even longer list of companies, such as Ubisoft, Nintendo, and Tencent. The outcome of the ongoing trial could therefore have serious implications for the whole industry.