Spencer emailed executives in November 2020, including Microsoft CEO Satya Nadella, “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.”
In November 2020, just a few days after the GameSpot interview, Microsoft showed its willingness to pursue Japanese companies, and Sega, in particular. At the time, Microsoft Gaming CEO Phil Spencer denied the report, in an interview with GameSpot, calling the report “inaccurate” and saying, “I mean, I'm not in every meeting that every team has, but I'll say not from me." Interestingly enough, in 2020, Bloomberg reported that Microsoft was thinking of acquiring Japanese studios. The long list includes Sega, Warner Brothers, Nexon, Supergiant Games, Niantic, Zynga, Bungie, and even Final Fantasy publisher Square Enix, according to internal documents. Throughout the trial, we’ve gotten more insight into companies Xbox considered buying so that it can compete against Sony and Nintendo. When reached for comment, Microsoft pointed IGN to past testimonies and discussions and declined to provide a new statement.
At times, Microsoft confidently showed off new products, while internally admitting to bigger worries, all of which highlight the ways the games industry relies on a culture of secrecy, and why this trial is such an important moment to understanding this industry. I found that some of the insights that came out of the trial testimony and documents demonstrate what Microsoft was really thinking internally and contrast directly with their external marketing. I’ve been interviewing Microsoft and Xbox executives since 2019 and keeping careful notes on how the company has marketed its new console, cloud gaming service, and position against Sony.
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