Console maker sought to snap up the Sonic creator but backed out last moment.
Former Microsoft executive Joachim Kempin has continued to show that he knows where all the company's skeletons are hidden as he revealed that the PC-maker considered a Sega buyout.
Looking upon the former console maker and Sonic The Hedgehog creator as a potential asset in its previously reported war against Sony, Microsoft considered purchasing the entire company.
"There was always talk maybe we buy Sega or something like that; that never materialised, but we were actually able to license them what they call Windows CE...to run on their system and make that their platform," the former VP of Windows Sales told IGN, referencing the ill-fated Sega Dreamcast.
"But for Bill [Gates] this wasn’t enough, he didn’t think that Sega had enough muscle to eventually stop Sony so we did our own Xbox thing."
Kempin recently explained how the software giant first entered the console making business in an attempt to halt Sony's advances.
According to the company veteran, Bill Gates was concerned that consoles could eventually turn into living room PCs and usurp Microsoft's rule in that sector.