Before Activision-Blizzard, Microsoft was planning to buy Sega

pcgamer.com:

The US Federal Trade Commission is currently butting heads with Microsoft, as the regulatory body tries to block the software giant's proposed $65 billion acquisition of Activision Blizzard. Xbox head honcho Phil Spencer was the latest executive to take the stand and deny ever thinking about stuff he wrote a few years ago, and as part of the hearings a tranche of internal emails were made public. One of which shows the suits in Redmond licking their lips at the prospect of acquiring the iconic Sega.

A 2020 email from Phil Spencer to Microsoft CEO Satya Nadella and CFO Amy Hoodand makes the case for acquiring Sega in some detail, and requests «Strategy Approval to approach Sega Sammy regarding a potential acquisition of their Sega gaming studios.» Sega Sammy Holdings is the result of a 2004 merger between Sega (gaming) and Sammy (pachinko). Microsoft, understandably, only wants the videogames.

Spencer goes on to say Sega has «a well-balanced portfolio of games across segments with global geographic appeal [that] will help us accelerate Xbox Game Pass both on and off-console.» He attaches a memo and some bullet points about the Japanese giant, noting Sega's gaming division represents around half of Sega Sammy's total profits, «or ~$900M of revenue and $60-90M of operating income, in each of Sega Sammy's last three fiscal years.»

There are some obvious notes to hit for why Sega would be a major asset, not least franchises like Sonic the Hedgehog, Yakuza, and the increasingly popular Atlus portfolio. It's also a major PC presence with not only the above but the likes of Football Manager, Total War, and Company of Heroes. Spencer's memo suggests future Sega games would launch «with subscription exclusivity» on Game Pass,