In a surprising revelation, court documents have uncovered Microsoft's consideration of acquiring Square Enix. The internal document, submitted as evidence during the ongoing hearings between Microsoft and the Federal Trade Commission (FTC), sheds light on the company's plans from 2019.
Microsoft's interest in Square Enix was driven by several factors outlined in the document. One key motivation was to strengthen Xbox's presence in Asian markets by gaining access to Square Enix's impressive portfolio of games, including Kingdom Hearts, Dragon Quest, and Final Fantasy. Microsoft believed that these franchises would significantly boost the adoption of Xbox Game Pass and its then-upcoming Project Scarlett, the codename for the next generation of Xbox consoles.
Interestingly, the document also highlighted Square Enix's potential for growth in the mobile segment. Microsoft envisioned acquiring Square Enix as a means to expand its foothold in the mobile gaming market, ultimately benefiting its future mobile-exclusive Game Pass offerings. While Microsoft's mobile presence was limited at the time, Square Enix possessed a robust collection of mobile-native games, making it an attractive prospect.
The extent of Microsoft's pursuit of Square Enix remains unclear. While the document refers to a "Strategy Approval" plan, it is unknown how far this plan progressed within Microsoft or if any contact was made with Square Enix. Nevertheless, considering Square Enix's recent high-profile PlayStation-exclusive releases, such as Final Fantasy 7 Remake and Final Fantasy 16, the revelation leaves room for speculation about missed opportunities.
While Microsoft's bid to acquire Square Enix did not come to fruition, the revelation highlights the company's ambition to diversify and strengthen its gaming ecosystem. As the legal proceedings continue, more details may emerge, shedding further light on Microsoft's plans and strategies within the gaming industry.
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