Microsoft announced earlier this week that it would be acquiring ZeniMax Media, the parent company of Bethesda Softworks. Thie deal cost Microsoft $7.5 billion, making it one of the largest acquisitions in the video game industry.
This acquisition increases the number of video game studios under Microsoft from fifteen to twenty-three. More importantly, Microsoft has added franchises such as The Elder Scrolls, Fallout, Wolfenstein, Quake, Doom, Skyrim, and The Evil Within in its portfolio.
Unsurprisingly, these titles will be a part of the Xbox Game Pass that Microsoft has been marketing for months now. But the last few titles have been notoriously buggy, raising a very important question. How Bethesda fits in the overall Xbox strategy and whether this is a smart move or not?
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Microsoft may have more exclusives?
Xbox Head Phil Spencer did point out that Bethesda’s games will still be available on non-Xbox consoles to honor previous agreements. This includes Deathloop and Ghostwire: Tokyo that will roll out for PS5 before they feature on the Xbox.
Microsoft has previously stated that Xbox isn’t reliant on exclusives but believes that the ecosystem of the console would be enough to get them ahead in the console war. Will this outlook change now that Microsoft has added Bethesda in its fold.
Moreover, the aggressive pricing policy that Microsoft has employed, supplemented with a range of new titles, may give it an edge over its rivals. Apart from that, it will give Microsoft a great number of devs to focus its attention on exclusives.
What does this deal mean for Bethesda?
This has also been considered an enabling move by many. Bethesda has had a tough few years and has struggled with success.
The fact is that Microsoft purchasing Bethesda enables the company to keep making games like it was. It's an enabling move.
— Jeff Grubb (@JeffGrubb) September 22, 2020
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I mean, the alternative was that Bethesda was probably going to start shutting down these studios and laying people off.
— Jeff Grubb (@JeffGrubb) September 22, 2020
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The titles that have failed to perform include Dishonored 2, Wolfenstein 2, and Fallout 76. These titles became more of a liability for Bethesda after they released but the acquisition has now given the studio more security and the ability to produce better titles in the future. They certainly have the ability, having produced some magnificent titles in its history.
Having said that, there is a lot of room for this move to backfire. But had this acquisition not been in consideration, Bethesda might have flatlined. We will have to wait to see how this deal pans out and how it helps both the entities involved. Be that as it may, it is one of the most exciting acquisitions that has taken place in a long time.