Microsoft just dropped a bomb on the gaming industry; one of the biggest acquisitions we have ever seen. Microsoft bought ZeniMax Media, the parent company of Bethesda Softworks, Arcane studios, Tango, Game works, and more under one brand and that is Xbox.
Microsoft is already a big deal, a big player in the gaming industry, but now it has become the gaming juggernaut overnight after they bought Bethesda for a whopping $7.5bn. It now owns an unparalleled stable of studios ranking out exclusives presumably. This deal has shaken the whole gaming world and words can’t describe how big this deal is.
To put things a bit straighter, Microsoft now owns Fallout, Doom, Dishonored, Elder Scrolls, Quake, and that is just scratching the surface though.
Moreover, Game Pass is getting much better and this deal will push it at an unforeseen level. Microsoft could double its Game Pass revenues with 30 million subscribers. As of now, Game Pass is generating an estimated $6 billion a year which means that it could be generating some serious cash purely off subscriptions.
Now let’s talk about what more Microsoft will get out of this deal. This now means that Microsoft will now expand from having 15 studios to 23. They are adding publishing offices and development studios across the world with over 2300 employees and again the roster of studios they are getting is staggering.
Besides, they are getting software that makes Doom, Quake, and more. They will also get their hands on Machine Games which make Wolfenstein and Tango Game Works, the creator of the Evil Within and Tokyo Ghostwire, a PS5 exclusive. They also got ZeniMax online studios which made the MMO Elder Scrolls Online. They also got Roundhouse studios and pretty much everything.
It is said that the Bethesda structure and leadership will remain intact. Microsoft continues to devour and hitting the gym daily to make a lot of gains. This deal surely highlights Microsoft’s deep pockets, they have money that Sony and Nintendo can’t fathom. Microsoft is on a studio buying spree for the last few years but nothing on the scale like this.
We can safely say that Microsoft has now built a mighty huge gap between it and its competitors.
Reinout is a games investor and strategic business consultant specializing in the games industry. Reinout established his credentials through his own successful investments, start-ups, consulting and (advisory) board positions that led through time to strong bonds with key stakeholders in this fast paced industry. He is known for his outstanding results in the gaming industry. He has worked with many game studios around the globe and is therefore well known in the international gaming industry. This game podcasts is for the gaming industry.
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