Microsoft acquires Xbox, Minecraft, MSN content moderation provider Two Hat

Microsoft has acquired Two Hat, which is a content moderation solution provider used to keep the online Xbox experience safe and clean. Together as one, the two companies are hoping to share advancements in moderation technology and also help protect diverse, global online communities.

Microsoft and Two Hat actually go way back, and this acquisition is a natural one for the Redmond giant. Two Hat's technology has been used in Xbox, Minecraft, as well as MSN. Their technology helps users to decide what they are comfortable with and what they aren’t. In the case of Xbox, that includes text filters that hide potentially offensive messages.

Under the acquisition, Two Hat will continue to operate with its existing customers still in tow and Microsoft won't stop supporting them. In the words of Dave McCarthy, Corporate Vice President, Xbox Product Services:

I’ve witnessed the impact they’ve had within Xbox, and we are thrilled that this acquisition will further accelerate our first-party content moderation solutions across gaming, within a broad range of Microsoft consumer services, and to build greater opportunity for our third-party partners and Two Hat’s existing clients’ use of these solutions.

So far in 2021, this is just the latest acquisition by Microsoft. It's been a busy year, and despite failing to acquire big-name entities like TikTok, Discord, and Pinterest, Microsoft has picked up a lot of smaller companies in hopes of boosting Teams and its other services. For example, the list includes OKR company Ally.io, video stream company Peer5, and Spend Intelligence company Suplari.

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