Microsoft
Square Enix was Xbox’s big target to strengthen its position in Asia and mobile devices
In 2019, Microsoft analyzed the viability of the purchase for its Xbox division. Spoiler alert: It ultimately didn’t go through.
There was a time when Microsoft analyzed the possibility of acquiring the services of Square Enix. The creator of such iconic series as Final Fantasy was one of the companies targeted for a hypothetical acquisition. According to the documents published during the trial between the Redmond company and the FTC for the purchase of Activision Blizzard, they show the full plans of the company in this matter.
Why did Microsoft want to buy Square Enix?
The published information indicates that the proposed purchase of Square Enix by Microsoft was founded on two basic pillars: increase the number of high-impact titles for the Xbox catalog and strengthen the brand in a difficult territory such as Asia, where PlayStation, Nintendo and the mobile market share the business. In particular, this last point was one of the reasons for the purchase and explains the future move they would make with Activision Blizzard, owner of a giant like King (Candy Crush).
The analysis was conducted in 2019 when Square Enix still had studios such as Crystal Dynamics and Eidos Montreal in its portfolio. In fact, among the major franchises that Xbox was interested in were two of Square Enix (Final Fantasy and Dragon Quest) and the Tomb Raider series, now in the hands of Embracer. Deus Ex is also mentioned, which also fell into the same group.
At the time, Project Scarlett was still being referred to as the codename for the current Xbox Series X. In Microsoft’s words, the platform was “key” to its future efforts with gamers and publishers: “Based on historical precedents, we believe that differentiated content experiences will be key to Scarlett’s success. While we have a strong portfolio of tentpole experiences (e.g., Halo, Minecraft, Gears of War), Sony and Nintendo enjoy meaningful advantages on this front.” The document also reflects several points dedicated to the risks of the purchase; unfortunately, they are hidden so as not to compromise confidentiality.