Microsoft Explored Acquisition of Square Enix to Enhance Xbox Presence in Asia, Facilitate Expansion of Mobile-Exclusive Game Pass Offerings

Recently released internal documents from the FTC v. Microsoft trial reveal that Microsoft considered acquiring Square Enix a few years ago. The aim was to enhance Xbox’s presence in Asia and facilitate the launch of mobile Xbox Game Pass offerings.

According to a report by The Verge, the documents confirm that Microsoft entertained the idea of acquiring Square Enix, the publisher behind the popular Final Fantasy series, in 2019. Although the level of acquisition consideration is unclear, the documents reveal that Phil Spencer provided feedback.

The documents also shed light on Microsoft’s motivations for considering the acquisition. In addition to bolstering Xbox’s presence in Asian markets where it has traditionally struggled, acquiring Square Enix would have allowed for simultaneous releases of new games on Xbox Game Pass and supported future mobile-exclusive Game Pass offerings. This suggests that Microsoft plans to expand its subscription service even further in the future.

It’s not surprising that Microsoft had an interest in acquiring Square Enix, given the publisher’s stature and Microsoft’s previous exploration of large Japanese publishers like SEGA and Bungie, the creator of the Halo series—one of Xbox’s most recognizable properties. Interestingly, Square Enix has taken a different approach, with many of its major games excluding Xbox consoles. For instance, titles like Final Fantasy Remake, Final Fantasy XVI, and Forspoken have not been released on Xbox. The success of Final Fantasy XVI, which became the best-selling PlayStation 5 exclusive shortly after its release, further suggests a strengthening relationship between Square Enix and Sony in the future.