Editor’s note: This article is part of Day 4 (June 28, 2023) of the FTC vs. Microsoft and Activision Blizzard trial.

Court documents recently made public have unveiled Microsoft‘s intriguing considerations to acquire Square Enix, the renowned publisher behind the Final Fantasy franchise. The revelation emerged during the evidentiary hearing between Microsoft and the Federal Trade Commission (FTC), shedding light on the tech giant’s strategic aspirations in the gaming industry.

A newly discovered internal document from 2019, submitted as evidence during the hearings, provided insights into Microsoft’s rationale for pursuing Square Enix. The document outlined several compelling factors, including the potential to enhance Xbox‘s presence in Asian markets and gain access to Square Enix’s extensive catalog of games, which encompass beloved titles like Kingdom Hearts, Dragon Quest, and the iconic Final Fantasy series. Microsoft believed that securing these franchises would significantly bolster the adoption of its subscription-based gaming service, Xbox Game Pass, as well as its next-generation console, Project Scarlett, which was still in the developmental stages at the time.

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Notably, the document revealed an intriguing proposition for Microsoft: the acquisition of Square Enix would have presented an opportunity for “mobile segment growth” within the Xbox ecosystem. Microsoft envisioned leveraging Square Enix’s vast expertise and resources to expand its foothold in the mobile gaming space and drive the development of exclusive titles for its mobile-oriented Game Pass offerings. While Microsoft’s presence in the mobile gaming realm has been relatively modest, Square Enix boasts a robust portfolio of mobile-native games, making the publisher an enticing prospect for Microsoft’s mobile aspirations.

The extent to which Microsoft pursued its interest in Square Enix remains uncertain. While the document unveiled a strategic plan titled “Strategy Approval,” the details regarding its progression within the Microsoft hierarchy and any potential interactions with Square Enix remain undisclosed. Consequently, it remains a matter of speculation as to what might have transpired between the two industry giants. Nevertheless, given Square Enix’s recent releases, including the critically acclaimed Final Fantasy 7 Remake and the highly anticipated Final Fantasy 16, which are exclusive to Sony‘s PlayStation platform, Microsoft’s contemplation of acquiring Square Enix holds particular intrigue.

Square Enix is not the sole major publisher that attracted Microsoft’s interest. Another internal document from Xbox revealed that the company considered several other potential acquisitions to address content gaps in its portfolio. Among the notable contenders were Sega, IO Interactive, and Bungie, along with various others. These deliberations highlight Microsoft’s strategic focus on securing prominent publishers and developers to fortify its position in the competitive gaming market.