Sega executive shuts down Microsoft acquisition rumors

Sega’s Chief Operating Officer, Shuji Utsumi, has denied the long-standing rumor that Microsoft will acquire the company and add it to Xbox Game Studios.

There have been rumors about Microsoft buying Sega since the days of the original Xbox, following Sega’s departure from the console market after the decline of the Dreamcast. This would have given the Xbox brand several iconic franchises immediately.

The Sega acquisition rumors have persisted over the years, with Microsoft’s leaked internal documents saying that the company was interested in buying Sega. This would have been part of a larger plan to boost the appeal of Xbox Game Pass.

Microsoft finally acquired Activision Blizzard in 2023, but the company could still be interested in more purchases. Many consider Sega a prime acquisition candidate, as it would bring Sonic the Hedgehog and all of the Atlus and Ryu Ga Gotoku Studio titles into the fold.

SEGA

Sega’s Chief Operating Officer has denied Microsoft acquisition rumors

The topic of Sega’s acquisition has seemingly been shelved for now, thanks to a CNBC interview with Shuji Utsumi. According to Utsumi, the Sega Sammy Group isn’t open to be acquired by another entity, regardless of price.

“Many companies are interested. We feel honored,” Utsumi said. “We have attractive IPs and potentials. Companies owned by the owner. A strong owner. I don’t think that kind of transaction is going to happen.”

Indeed, Sega is already in the business of buying companies. In 2023, Sega bought Angry Birds developer Rovio Entertainment for $771 million USD. The company has also seen tremendous success with the Sonic the Hedgehog movie franchise, helping introduce its biggest series to a new audience.

Sega’s fortunes have gone up and down over the years, but the company is doing well right now. If Microsoft were going to buy Sega, it would have made sense to do it during one of the company’s lulls rather than now when it’s successful.

With that being said, Microsoft has the cash to throw around ridiculous numbers, and while Sega might not be interested in being acquired at the moment, that may change in the future. If Microsoft wants to spend billions for a company that could help it gain a foothold in Japan, then Sega is still a strong bet.