The Microsoft Corporation is exploring the possibility of acquiring Sega, Bungie, and IO Interactive

In November 2020, Xbox chief Phil Spencer sent an email to Microsoft CEO Satya Nadella and CFO Amy Hood, seeking approval to approach Sega Sammy for the acquisition of its gaming studios. Spencer highlighted Sega's well-balanced game portfolio, which would accelerate Xbox Game Pass both on and off consoles.

Internal documents from Microsoft's legal case against the US Federal Trade Commission revealed Sega's inclusion in the "M&A final watchlist" alongside companies like Bungie, Zynga, IO Interactive, Supergiant Games, Niantic, Thunderful, Playrix, and Scopely.

If Microsoft completes the acquisition of Activision Blizzard, the deal would surpass Take-Two's previous record-breaking acquisition of Zynga. Spencer mentioned that Microsoft had extensive discussions with Zynga before considering other targets.