As Microsoft defends its proposed acquisition of Activision Blizzard in court, a lot of inside information has been revealed about the video game industry through court documents. This has included companies that Microsoft has considered buying; among those revealed was Square Enix, the company behind the Final Fantasy, Dragon Quest, and Kingdom Hearts franchises. The proposed bid was codenamed "Project Phoenix" and the appeal for Microsoft was that it could have helped the company in Japan, where the Xbox brand has historically struggled. As with the other proposed acquisitions, Microsoft inevitably decided to look elsewhere, for one reason or another.

Microsoft's documents note that there were several different reasons that these proposed acquisitions did not go farther than the concept stage. The most plausible explanation from Microsoft's documents is "cultural fit." It's hard to imagine a Japanese company like Square Enix having any desire to agree to a purchase from a company like Microsoft. Square Enix also has a long history with PlayStation and Nintendo, and likely would not have had any interest in this type of proposal. At the end of the day, it's all a moot point, as Microsoft bid for Activision Blizzard, instead.

Since entering the console market, Microsoft has had a more difficult time finding a following in Japan than anywhere else. Nintendo's portable platforms tend to do quite well there, and Sony's success with Japanese publishers like Konami and Capcom has given PlayStation a strong foothold as well. Had Microsoft purchased Square Enix, it would have been interesting to see what impact it might have had on the industry as a whole.

Interestingly enough, as The Verge's Tom Warren notes, Microsoft's list of proposed acquisitions was not meant to be made public. That information was supposed to have been redacted, but ended up being revealed publicly. This has actually happened to PlayStation as part of this case as well, as the cost of Horizon Forbidden West's development was revealed to be $212 million.



Posted: Jul 01, 2023 10:35 pm
Related Forum: Xbox Forum

Source: https://comicbook.com/gaming/news/xbox-microsoft-square-enix-purchase-acquisition/