Microsoft will buy video game giant for $7.5B
Microsoft dropped a gaming bombshell Monday morning when it announced that it has entered an agreement to acquire ZeniMax Media, the parent company of a large number of video game development studios across the world. Microsoft is paying $7.5 billion in cash for the deal. ZeniMax is commonly known for its subsidiary, Bethesda.
To put this in perspective, the $7.5 billion is almost as much as Disney paid for Marvel and Lucasfilm combined.
The deal encompasses all of Bethesda’s studios and properties, which includes the Elder Scrolls, Fallout, Wolfenstein, Dishonored, the upcoming Starfield and more.
This gives Microsoft a big game development footprint in Texas. The deal includes id Software, the legendary developer of Doom and Quake, which is based in Richardson. Alongside id, Bethesda Game Studios has an office in Dallas at the home of what was formerly Escalation Studios. You’ll also find Arkane Studios in Austin.
Oh, and there’s also QuakeCon, an annual PC-focused gaming event/party that brings thousands of players to the Dallas area from across the world.
Phil Spencer, head of Xbox, said in a blog post, “Like us, Bethesda are passionate believers in building a diverse array of creative experiences, in exploring new game franchises and in telling stories in bold ways. All of their great work will of course continue and grow, and we look forward to empowering them with the resources and support of Microsoft to scale their creative visions to more players in new ways for you.”
Bethesda’s Todd Howard said, “We share a deep belief in the fundamental power of games, in their ability to connect, empower and bring joy. And a belief we should bring that to everyone — regardless of who you are, where you live or what you play on. Regardless of the screen size, the controller or your ability to even use one.
“We can’t think of a better group of people to do that with than those at Xbox.”
Microsoft announced the deal less than two months before the release of its next line of video game consoles, the Xbox Series X and Series S. The acquisition allows Microsoft to include Bethesda’s
sizable library of hit video games in its Netflix-like subscription service, Xbox Game Pass, increasing the value proposition for consumers ahead of the next generation of gaming.
Presumably, this also sets the stage for more blockbuster releases to appear exclusively on the Xbox and not on Sony’s competing hardware, the PlayStation 5. There are wrinkles to consider here, though, including that Sony already has locked in a timed exclusive deal for Bethesda’s Deathloop, which is expected to hit the PS5 next June. Microsoft also has a recent history of sharing its titles with other platforms, with Minecraft being the most prominent example. Despite being owned by Microsoft, Minecraft titles have continued to exist on Sony and Nintendo’s hardware.