Is Microsoft Buying Sega? Potential E3 Announcement

is microsoft buying sega logo

Despite the cancellation of E3 2020, the rumors surrounding potential announcements continue to thrive. From the details involving next generation consoles to this fall’s lineup, fans expected a showcase event. However, now that E3 is officially cancelled, journalistic community is searching for leaks and headlines. On Monday, the industry was treated to a potential blockbuster announcement, which left the community wondering: Is Microsoft buying Sega?

In Holy Matrimony

leaked image showing xbox game studios and sega logo

Mergers and acquisitions are routine in the business world. In fact, they rarely make headlines in most industries with the exception of notable companies. But the video game industry is slightly different. Because most game releases filter through three console owners, Microsoft, Sony, and Nintendo hold considerable power. When one of the “big three” firms acquires a third-party studio, it normally means that the acquiree’s games become exclusive to the purchaser. Some acquisitions seem natural, such as Sony acquiring Insomniac Games, but others are more nuanced. For Microsoft and Sega, a potential marriage is unexpected.

What Now?

During the 16-bit era, Sega and Nintendo engaged in a marketing war. With Nintendo viewed as the “family friendly” console, Sega appealed to more edgy and mature fans. But unlike the fallout with SquareEnix, Nintendo was able to maintain an amicable relationship with Sega. Both companies even shared an exclusive IP: the Mario and Sonic Olympic series.

In a rumor published by alt/char games, Xbox was set to announce its acquisition of Sega during E3 2020. Armed with the marketing slogan “Power Your Dreams”, Microsoft appeared ready to capture the summer headlines. But in a move reminiscent of its acquisition of Rare, Xbox is acquiring a studio with limited popularity on Sony and Nintendo platforms.

Unlike Rare, who created the Banjo Kazooie and Donkey Kong Country series, Sega has a limited foothold within the industry. Although Sonic Mania is a resurgence for the Sonic franchise, Sega has struggled mightily. But an acquisition by Xbox could alleviate financial risk for the storied company and allow it to build upon its most successful franchises. With Microsoft continuing to release its most valuable IP on Sony and Nintendo platforms, fans of Sega games should expect its games to release on all platforms in the future.

While the acquisition might appear concerning on the surface, Microsoft continues to maintain positive relationships across the video game industry. If nothing more, its purchase of Sega should result in more robust video games in the future. Time will tell, but we are bullish on the merger’s potential.


Although the rumored announcement was likely mean for E3 2020, fans are still left wondering the following: Is Microsoft buying Sega? While the merger is not improbable, the potential partnership begs the question about future Sega releases on Sony and Nintendo platforms.

But we want to know what you think. Do you believe a merger with Microsoft would benefit Sega? What games would you like to see Sega release in the future? Let us know what you think in the comments below or the social media links on the right. Be sure to check out our other news items on SmashPokemonModern Warfare, and more. Also, be sure to follow us on Twitter to stay on top of all the latest GamingROI content.

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