Microsoft planned to buy Sega and Bungie to "expand Xbox Game Pass's reach"

techradar.com:

Internal documents have revealed that Microsoft had ambitious plans to acquire a range of developers, including Sega and Bungie. 

In addition to Xbox head Phil Spencer's testimony, the ongoing legal battle between the US Federal Trade Commission and Microsoft over the latter's plans to acquire Activision Blizzard has led to the revelation of a range of confidential documents. Among these was an email from Spencer sent in 2020 outlining a strategy to «accelerate Xbox Game Pass» through the designation of «acquisition targets» (via The Verge).

Though the email focused on Sega, it mentioned «informing our next strategic acquisition target», a theme that would be developed in another document revealed during the trial. A 2021 document revealed a list of companies that Microsoft had in its sight for acquisition as part of Xbox Game Studios. Among them were Bungie, IO Interactive, Supergiant Games, Niantic, and Zynga. 

Suffice it to say, these companies are big names within the industry. IO Interactive is renowned for the Hitman series, while Niantic's Pokémon Gohas amassed fans from around the world. Zynga is a dominant force in the mobile market while Bungie's Destiny 2continues to thrive even six years after release.

Microsoft's proposed acquisition of Activision Blizzard has attracted a great deal of scrutiny from governments across the world over concerns that it would allow Microsoft to promote a monopoly in the cloud gaming market. The UK's own Competition and Markets Authority flat-out blocked the deal, while the European Union's own body only permitted the deal to go ahead with some significant caveats.

The tech giant has taken great pains to allay concerns of monopoly building, offering a range of deals with competitors,