You all remember there is a resounding rumor that Square Enix could have just got rid of their western studios last year to make it attractive to be bought and that a main buyer was in the form of Sony and Playstation?

Well, while this remains a big sound in the rumor mill, Microsoft surprisingly had the same idea.

As part of the Day 4 of the Preliminary Injunction against Activision Blizzard sale hearing, it was shared where FTC said that Microsoft played with the idea under the codename Project Phoenix.

This project was part of many ideas of Phil Spencer on making Xbox to capitalize in the gaming industry by having Square Enix joining via purchase to Xbox Game Studios and having Final Fantasy and other franchises to be part of the Xbox catalog with bolstering Xbox Game Pass value and providing new titles for Xbox Series S/X. 

The project was running in 2019 and was actually part of the pre-marketing to-do ahead of the launch of the next-gen Xbox consoles.

This filling apparently was before Square Enix sold Crystal Dynamics, Eidos Montreal and Square Enix Montreal to Embracer Group as there was a mention to develop a new Deus Ex game as part of the long-term plans.

History went in another direction as Microsoft decided to buy Zenimax and Bethesda after a Square Enix sale could not materialize.

Historically speaking and if rumors back in 2015 are true, this would be a second time or attempt of Microsoft trying to buy Square Enix after their first attempt almost 8 years ago and pretty much Microsoft received the same treatment when they attempted to buy Nintendo back in late 90’s, a laugh on their faces.