Microsoft Said It Would Have Kept Sega Games Multiplatform After Proposed Buyout

Microsoft would have kept Sega games multiplatform if it had bought the company, court documents have revealed.

As part of a strategy document released during the ongoing Federal Trade Commission (FTC) vs Microsoft trial to determine the fate of Xbox’s $69 billion acquisition of Activision Blizzard, Microsoft outlined its operating plan for Sega, had its plan to buy the company behind Sonic came to be.

The document, reviewed by IGN, reveals Microsoft’s plan for Sega to report into Xbox Game Studios boss Matt Booty with the following operating principles:

• We will continue to develop and sell all acquired games and franchises on all relevant platforms (e.g., Android, iOS, PlayStation, Steam, Switch, Windows, Xbox, etc).
• We will bring previously exclusive to PlayStation and Nintendo titles to Xbox and launch future titles on Xbox in addition to other relevant platforms as rights permit.
• We will launch all acquired games and franchises with subscription exclusivity into Xbox Game Pass on console, PC, and cloud; future releases will ship into Xbox Game Pass on a day-and date basis. 

The important point here is that Microsoft, in November 2020 when this strategy was outlined, did not plan to make Sega games such as Sonic Xbox exclusive. Rather, it planned to continue to make Sega games multiplatform, and bring exclusives to Xbox.

One of the key questions the FTC has put to Microsoft as part of its bid to block the Activision Blizzard deal is whether it would make Call of Duty exclusive to Xbox. It has pointed to Bethesda’s upcoming space role-playing game Starfield, which is not coming out on PlayStation, as an example of Microsoft’s behaviour after it bought parent company ZeniMax. For its part, Microsoft has committed to keeping Call of Duty multiplatform for at least a decade if it buys Activision Blizzard. This note on its plan for Sega, should the deal have gone through, backs up Microsoft’s case.

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.

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 today.

Wesley is the UK News Editor for IGN. Find him on Twitter at @wyp100. You can reach Wesley at [email protected] or confidentially at [email protected].