Matt Firor, President at ZeniMax Online Studios LLC, speaks about 'The Elder Scrolls Online, Elsweyr' during the Bethesda E3 Showcase at The Shrine Auditorium on June 09, 2019 in Los Angeles, California. (Photo by Christian Petersen/Getty Images)
Microsoft is buying the company behind popular video games The Elder Scrolls, Doom, and Fallout.
The software giant said Monday that it is paying $7.5 billion for ZeniMax Media, the parent company of video game publisher Bethesda Softworks.
Microsoft said it is buying Bethesda in part to beef up its Xbox Game Pass game subscription service, which it says has over 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 computers, Microsoft said.
Microsoft has new consoles debuting on Nov. 10: the Xbox Series X and the stripped down Series S version. It will be competing against Sony's new PlayStation 5 console.
R.W. Baird analyst Colin Sebastian said the deal is part of a wider industry trend of consolidation. Microsoft already owns studios that make popular games including Minecraft and the Halo franchise.
"We believe the deal checks a lot of boxes for Microsoft, such as strengthening the Xbox/Games division product portfolio as competition increases, boosting 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, Washington, expects the deal to close in the second half of fiscal 2021.
Shark Tank's Daniel Lubetzky, Founder of KIND Snacks, breaks down the FDA's new definition of healthy, plus, his thoughts on building a stronger democracy.
James Gallagher, CEO and Co-Founder of GreenLite, discusses the challenges of rebuilding the fire-affected LA area and how permitting complicates the process.
Super Bowl Champion, Julian Edelman, talks Chiefs' conspiracies, his fave TSwift song and his bet for Super Bowl LIX. Plus, the best time for a bathroom break.
Ron Hammond, Sr. Director of Government Relations at the Blockchain Association, breaks down Trump’s plan to strengthen U.S. leadership in financial technology.
BiggerPockets Money podcast is now available on Cheddar Wednesdays at 10am ET! Mindy Jensen shares how her podcast is helping people gain financial freedom.
The social video platform's future remains in doubt, as players scramble to profit from the chaos. Plus: Big oil gets bigger, DOGE downsizes, and tariffs!
