Microsoft to buy ‘Doom’ and ‘Fallout’ video game maker ZeniMax for $7.5 billion – CBS Detroit
REDMOND, Washington (AP) – The Elder Scrolls, Doom and Fallout… Microsoft is buying the company behind the company of these popular video games.
The software giant said Monday it is paying $7.5 billion for ZeniMax Media, the parent company of video game publisher Bethesda Softworks.
Microsoft said it was buying Bethesda in part to bolster its Xbox Game Pass game subscription service, which it says has more than 15 million subscribers.
Bethesda games, such as Starfield, which is currently in development, will launch on Xbox Game Pass the same day they launch on Xbox or PC, Microsoft said. Microsoft launched new consoles on November 10, the Xbox Series X and the streamlined Version S series. It will compete with Sony’s new PlayStation 5 console.
RW Baird analyst Colin Sebastian said the deal was part of a broader trend of industry consolidation. Microsoft already has studios making popular games, including Minecraft and the Halo franchise.
“We believe the deal ticks many boxes for Microsoft, such as strengthening the Xbox/Games division’s product portfolio as competition increases, raising the profile of Xbox subscription services, and providing more content for the company’s cloud gaming initiatives,” he wrote in an investor note.
Microsoft Corp., which is based in Redmond, Wash., expects the deal to close in the second half of fiscal 2021.