Microsoft Gaming CEO discussed Nintendo acquisition, Xbox woes in leaked emails

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Dozens of unredacted internal Microsoft emails were leaked as part of the FTC investigation into the tech company's acquisition of Activision Blizzard, revealing thoughts of buying Nintendo, Sega and more.

U.K. regulators said Microsoft’s restructured deal to acquire ‘Call of Duty’ maker Activision Blizzard addresses concerns and opens the door to it being cleared.The email chain about Nintendo is dated Aug. 5, 2020, months after sales skyrocketed for Nintendo’s hit game “Animal Crossing: New Horizons” during the first few months of the COVID-19 pandemic.

The emails also confirmed rumors from earlier this summer that Microsoft had targeted another Japanese video game company, Sega, best known for its “Sonic the Hedgehog” games. A strategy deck circulated by Spencer in November 2020 outlined several key business elements of Sega and how its assets appealed to Microsoft.

Microsoft CEO Satya Nadella weighed in, inquiring how Microsoft could better appeal to Activision Blizzard using Microsoft’s Azure cloud system, such as a proposed 90-10 revenue split in comparison with Google’s rumored 80-20. Spencer responded that what Microsoft lacked in mobile gaming infrastructure at the time would be made up for with its cloud gaming system.

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