I suppose it’s definitely quite possible to have both, but it seems to be a very tall order where most developers are either seeking independence or too busy with their own respective projects. I actually do agree that MS could strongly benefit from building upon their current and past franchises even more so than focusing on new IPs, but it’s highly dependent on the circumstances of the game and developer. For you Killer Instinct example I think MS could do that for Killer Instinct because honestly it’s a pretty bare bones concept of game you just need cool characters, long combos, and a decent fighting system. I can’t honestly see a game like Lost Odyssey 2 or Blue Dragon 2 being done without Sakaguchi’s involvement and it would need a huge budget.
Though there does seem to be brightside to all this Lionhead is supposed to be working on a new franchise, Kamiya does seem to want to do a sequel Scalebound calling it the first game, and Remedy wants to do an Alan Wake 2, so your wish may be granted, but it’s going to be a long time before we see any of this come into fruition, but it seems MS is on the right path.
One year later? NOYCE. Much respect. Also, great choice! Really hope Sega brings that series back, and MS would be fortunate to have it too.
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If they buy Sega that means 2 extra fighting games on the Xboxone and Win10, Virtua Fighter & Eternal Chapions. 
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It really doesn’t though. There’s no indication that VF 6 is in the works and Sega hasn’t done anything with Eternal Champins in 20 years. Just being bought by MS wouldn’t suddenly revive that IP.
Not suddenly, for sure. But MS would presumably buy Sega for their IPs, most of which, Sega has no desire to use themselves. VF6 and EC2 might not be in development, but at least under MS, the chances would go from none to slim.
Plus, Sega has a ton of other IPs in s ton of genres, so bringing back any of them would likely be a win in my book and hopefully for MS as well.
Obviously this would never happen. It’s complete and utter fantasy, but I do think that it would make sense for MS. I’m probably overstating it here, but I think that Sega is one of the historical pillars of this industry, and I’d love to see many of their high caliber franchises live on. I also think that MS could use a bombshell like this right now, a new wave of optimism followed by a wide variety of new games that neither Sega nor MS could realistically bring to the market by themselves.
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