Former FanByte and Game Informer writer Imran Khan has indicated that Microsoft has been in talks with “major Japanese publishers” about acquisitions in order to grow the Xbox Game Pass Library. As Microsoft continues to grow its Xbox Game Pass service, scooping up a well-known Japanese publisher could dramatically increase the number and variety of titles available on the service.
Microsoft has spent the last several years acquiring multiple game developers and publishers under its Xbox Game Studios brand, and this latest rumor indicates that this trend seems likely to continue. In addition to acquiring development studios such as Tim Schafer’s Double Fine Productions, the studio behind 2021’s critically acclaimed Psychonauts 2, Microsoft has also purchased Doom and Skyrim publisher Bethesda Game Studios. In a move that has drawn both praise and scorn from some gamers, in early 2022 Microsoft also announced its desire to acquire Call of Duty publisher Activision Blizzard.
Speaking on the Giant Bombcast, Khan stated that Microsoft is interested in acquiring at least one major Japanese publisher and have been engaged in talks to that end. Khan reasons that, much like Netflix began to produce more original content in recent years to avoid paying licensing fees for carrying existing programs, Microsoft is seeking to move more development in-house rather than paying licensing fees to add games from other developers and publishers to Xbox Game Pass. Referencing rumors from earlier this year about a potential acquisition of video game publisher EA by Amazon, host Jeff Grubb noted that Microsoft may also be in a hurry to acquire new developers and publishers due to increased competition after high-profile acquisitions such as Tencent and Sony's increased stake in Elden Ring developer FromSoftware.
One complaint that Microsoft has faced ever since the launch of the original Xbox is the lack of quality Japanese titles available on its hardware, particularly when compared to rival Sony’s PlayStation. Acquiring a Japanese studio could go a long way towards addressing this issue, a possibility likely to excite many western gamers and even potentially draw in more gamers from Japan, which is a market where Microsoft has consistently struggled to gain a foothold. Although Microsoft has yet to make any official announcement about acquiring a Japanese publisher, Grubb stated that he thinks Microsoft is likely to make such a move if and after their acquisition of Activision Blizzard is approved by regulators.
With companies such as Sony and Embracer Group, which recently acquired multiple studios and IPs from powerhouse Japanese publisher Square Enix, growing their roster of talented developers, it only makes sense that Microsoft would attempt to do the same. Acquiring a Japanese publisher could help Microsoft remain competitive in the increasingly consolidated world of video game publishing, but could also lead to concerns from gamers that western ownership could erode some of what makes these publishers unique. No matter how Microsoft chooses to proceed, it’s likely that the trend of high-profile acquisitions in the video game industry will continue for the foreseeable future.
Source: Giant Bomb/YouTube