Microsoft Buys Bethesda For $7.5 Billion Cash

In what is reportedly the most expensive video game deal ever made, Microsoft announced its plans to acquire ZeniMax Media, the owner for Bethesda Softworks, for $7.5 billion in cash today. While the deal won't close until next year, Microsoft's acquisition is a boost for the company's online gaming platform Xbox Game Pass, giving Microsoft a leg up in the next-gen console wars.

The move comes days after Sony's PlayStation 5 pricing and spec announcement. Microsoft's response shows a clear focus for the next-gen video game console wars: *checks notes* video games. Spending close to $7.5 billion on the developer, Microsoft is making sure that Game Pass subscribers have plenty to play when they sign up.

"This is an awesome time to be an Xbox fan. In the last 10 days alone, we've released details on our two new consoles which go on pre-order tomorrow, launched cloud gaming in Xbox Game Pass Ultimate, and now we're making another investment in the most critical part of our strategy: the games," Gaming at Microsoft Executive Vice President Phil Spencer said via a press release.

"Generations of gamers have been captivated by the renowned franchises in the Bethesda portfolio and will continue to be so for years to come as part of Xbox."

That investment is a good one. Bethesda's library ensures a host of games available for Microsoft Game Pass, the company's online gaming subscription service that aims to be the much-coveted Netflix for gaming. Players pay a subscription fee and play games from Microsoft's online catalog. That sounds all well and good, but without games that people want to play, the whole thing becomes Apple Arcade or Google Stadia pretty quickly.

Microsoft's buy could also have huge implications for the future of Bethesda titles. Most importantly for Fallout fans, Bloomberg’s Jason Schreier points out that now that Obsidian and Bethesda are sibling studios, Fallout: New Vegas II becomes a very real possibility.

Some fun facts:
- This is 3x what Microsoft paid for Minecraft/Mojang
- Bethesda and Obsidian are now sister studios. Fallout New Vegas 2 is now actually a possibility
- Microsoft is now releasing two timed PS5 exclusives lol

— Jason Schreier (@jasonschreier) September 21, 2020

The deal could also mean some very lucrative Xbox exclusives, which should be called "Xbox Xclusives." One of the Xclusives could be the much-anticipated Starfield, Bethesda's first new franchise in 25 years. Microsoft even mentioned the game in its announcement.

But the deal isn't just a huge gambit for Game Pass, but also xCloud, Microsoft's new mobile cloud gaming service. xCloud isn't just for XBox. It puts real-deal Xbox games on Android phones and tablets. Adding Bethesda titles to Android could be a boon for mobile gaming and make xCloud a must-have for gamers.

In addition to their library of games, Microsoft will acquire all of ZeniMax Media's offices, studios and 2,300 employees. The deal is Microsoft's most significant game-related acquisition since 2014, when the company bought Minecraft studio, Mojang, for $2.5 billion.