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Microsoft to acquire ZeniMax Media and Bethesda Softworks for $7.5B

1185 points| MaximumMadness | 5 years ago |bethesda.net

779 comments

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[+] francis_t_catte|5 years ago|reply
Soon we'll just have Microsoft, Epic, and a conglomeration of EA, Activision, and Ubisoft after Bobby Kotick forces them all to merge. Facebook will bungle up any chance they have of capturing the gaming market after writing a cryptic paragraph about their legal right to request blood samples from all Oculous users in the TOS. Valve will quietly exit software development altogether, and pivot to building custom vanity knives using their hardware manufacturing experience. Can't wait for the future GAAS market!
[+] apatters|5 years ago|reply
Sure, if you ate McDonald's every day you'd probably think that there are no good restaurants anymore.

My top 4 games by playtime in the last few years were Rimworld, Oxygen Not Included, Dwarf Fortress and WoW Classic. Honorable mentions go to Spelunky and Stellaris. It's to everyone's great regret that a single one of these titles was purchased by one of the shitty publishers you mentioned, fortunately it's the one that's on its last legs.

[+] dijit|5 years ago|reply
FWIW Ubisoft is very hostile to being acquired.

I worked there for 6-7 years and the CEO fought off vivendis acquisition. Which was not the first.

He has even gone so far as to decentralise the Canadian studios so that if the company was somehow acquired the aquirer could not close down studios without heavy fines from the Canadian government.

[+] doomlaser|5 years ago|reply
Unity just had its IPO, and the technology is powering a huge fraction of games across all platforms, from recent hit Fall Guys to Pokemon Go, to thousands of indie efforts, not to mention wide adoption in both the AR software industry and as a platform for many AI research projects. I don't know what its financial future will be as the company has been focusing on growth over profit, but it's a significant player.

Tangentially, open-source game engine Godot keeps getting better and better, and it's just a matter of time before a significant game is made using its tools: https://godotengine.org/

[+] fendy3002|5 years ago|reply
There are more: - paradox interactive - rockstar, which is strong from gta v online and rdr - cd projeckt red, which also get income from gog and hyped cyberpunk - valve won't exit software devs in short time, their investment in vr is big. I won't be surprised if they release vanity knives with lootbox though

IMO Bethesda decided to sell to MS because their recent games cannot generate enough popularity. They can only hoped for skyrim and are struggling with their old engine.

[+] criddell|5 years ago|reply
If Epic is successful in their lawsuit against Apple, then I think it's only a matter of time before the consoles will have to allow alternate stores as well.

The hardware-is-sold-at-a-loss argument that people like to use to defend closed console stores isn't as convincing when the console makers also own the biggest money making game studios as well.

Go Epic, go!

[+] LanceH|5 years ago|reply
I was expecting you to finish with valve pivoting to hats.
[+] ineedasername|5 years ago|reply
We still have large, amazing, original games coming out of small studios. Kingdom Come: Deliverance is an excellent example.

We may get to a point where there are practically no "medium-large" developers and only "massive" ones like Microsoft, but I'm confident we'll still get great games from outside the massive groups.

[+] strikelaserclaw|5 years ago|reply
In just a generation we will have our own version of zaibutsu and chaebols, isn't that exciting !
[+] SSLy|5 years ago|reply
Nintendo is self-sustainable, Apple is exerting a lot of influence among smaller studios with Arcade. Like Annapurna Interactive (which is nota bene funded by Oracle).
[+] vlunkr|5 years ago|reply
As long as no one buys From Software everything will be ok. Praise the Sun.
[+] klmadfejno|5 years ago|reply
The barrier between what indie studios and big studios can produce is increasingly shrinking. I'd say the market has never been healthier. The sheer amount of content is still constrained by some linear function of man hours but there's enough crowdsourcing business models like kickstarter and early access releases that even small shops can afford to show a cool concept and get funded for its completion.
[+] eunos|5 years ago|reply
Don't forget Tencent.
[+] chaostheory|5 years ago|reply
If you think Valve will exit software development, then you don't understand the market. Valve did do that and had this luxury when they were the only big game platform on PC. Unfortunately for them, there's GOG, EPIC, and MS Game Pass now. They need exclusives and the best way to do that without going the EPIC route is by developing their own games.
[+] kanox|5 years ago|reply
A lot of people claim that this is reducing competition but the gaming industry seems to be much less consolidated than many others.
[+] DubiousPusher|5 years ago|reply
I don't think it's fair to include Microsoft in that list. They buy game studios so they can close them and shelve their IP after several attempts to turn beloved franchises into GAAS products. They're less of a game studio conglomerator and more of a recycling bin.
[+] 127|5 years ago|reply
Godot, Blender, itch.io, Krita. Nobody forces you to use walled gardens. Games are entertainment, not something mandatory, so I wouldn't worry too much. If there's too much of an lock-in from the major vendors, it will simply cause the indie scene to explode.
[+] aikinai|5 years ago|reply
How did you leave out Nintendo? :(
[+] me_me_me|5 years ago|reply
Ouch! This cuts deep because of how close to actual future it sounds. Especially

> Valve will quietly exit software development altogether, and pivot to building custom vanity knives using their hardware manufacturing experience.

[+] publicola1990|5 years ago|reply
I think Sega is also a major player, they have bought up many studios in recent years including Relic, Creative Assembly and Amplitude.
[+] Bombthecat|5 years ago|reply
That's how every maeket works, sooner or later, things will be in a few hands.

At least indoe games still have a chance. (among us for example)

[+] acolumb|5 years ago|reply
I find that funny when Among Us (indie) and Fall Guys (also indie) are some of the highest-trending games at the moment.
[+] dogma1138|5 years ago|reply
Microsoft and EA have some deal now revolving around Game Pass Ultimate which grants you access to EA Play also.
[+] dragonsh|5 years ago|reply
Probably missing the largest gaming company in the world Tencent here. I believe they will still thrive.
[+] 29athrowaway|5 years ago|reply
Bobby Kotick is on Jeffrey Epstein's list. He also lost a sexual harassment case against a flight attendant from one of his private flights.

Miss Ukraine 1996 married Bobby Kotick's dad, Charles Kotick (for 2 years, before he passed away).

[+] RobRivera|5 years ago|reply
Where can I preorder the butterfly cloud9 knife?
[+] weregiraffe|5 years ago|reply
>Soon we'll just have Microsoft, Epic, and a conglomeration of EA, Activision, and Ubisoft

And, you know, all the other independent developers. Of which there are a legion.

[+] oneplane|5 years ago|reply
Embrace, extend, extinguish but for games!
[+] andrea92|5 years ago|reply
Lol, you're probably not far off :D
[+] wpdev_63|5 years ago|reply
Holy sh!t. Bethesda is huge!

Well I was just thinking the other day that Microsoft really doesn't have any first party studio that are really as good as Sony's first party. IMO they didn't release a game 'this' gen that makes picking up a xbox one worth it. This could change that with fallout and doom. Also this allows them to bring the ID tech engine under their stewardship....

I just hope that they don't trash the franchises in an attempt to bolster game pass.

[+] greenduck|5 years ago|reply
All of these consolidations of power are nuts. Feels like we need another round of trust busting in the next 10/20 years to help introduce real competition back into the markets.
[+] CivBase|5 years ago|reply
Normally I would 100% agree, but the barrier for entry is so low that I'm not sure that consolidation in the video game market. There are plenty of issues which plague the video game market (software ownership rights, anti-competitive exclusivity deals, workforce abuse, literal gambling for children, pre-order "culture", etc), but I don't think this is one of them.

That said, I don't know if this is necessarily a good thing either. Strictly as a video game publisher, Microsoft has been doing pretty well for themselves over the last five years. They've definitely stood out as one of the more consumer-friendly publishers, but the market is full of notoriously bad publishers (Bethesda included) so being one of the better ones isn't very praiseworthy.

Microsoft also has their own jaded publishing history which includes some pretty bad moves at the end of the 360 generation and beginning of the Xbox One generation. The Kinect was a very high-profile failure. The original Xbox One was met with a strong backlash for lacking support for physical media. They played a significant role in the integration of "microtransactions" into full priced video games. Although they have done many great things over the last few years, I'm still weary of them as a publisher.

I think the jury is still out on whether this is a net positive for the video game market, but it will definitely make the upcoming console generation very interesting.

[+] Firebrand|5 years ago|reply
Bethesda Games are not going not be exclusive to Xbox -- Confirmed by Todd Howard:

>Like our original partnership, this one is about more than one system or one screen. We share a deep belief in the fundamental power of games, in their ability to connect, empower, and bring joy. And a belief we should bring that to everyone - regardless of who you are, where you live, or what you play on. Regardless of the screen size, the controller, or your ability to even use one.

https://bethesda.net/en/article/4IwKWIj174Cb2QNTTtBAEb/todd-...

[+] acomjean|5 years ago|reply
Microsoft bought Bungie in 2000. -(Halo was going to be for mac, and demoed by Steve Jobs who I guess made it look so great Bungie sold.)

released a bunch of very successful games as xbox exclusives.

7 years later Bungie left microsoft as its own company again. (not sure how that happened.

https://en.wikipedia.org/wiki/Bungie

[+] gregjw|5 years ago|reply
The year is 2040.

Gigaconglomerates Tencent, Activision Blizzard Ubisoft (ABU), Microsoft and Apple gatekeep the entire gaming industry.

Rebel guerilla groups of small publishers and indie developers rise up to take control of their encampments.

[+] bstar77|5 years ago|reply
This just further confirms that my energy and money is going to the indie space. The level of enjoyment I get out of Factorio, Cuphead, Cogmind, Crusader Kings III, Curious Expedition 2, EXA Punks, Elite Dangerous, Kenshi, etc is so much greater than any AAA title I've touched in the past 5 years, yet these games are cheaper and most can run on a potato. I want to play games, not interactive movies.
[+] Danieru|5 years ago|reply
Incredible that Fallout and Obsidian are now under the same roof again. The Outer Worlds was fun, and I want to see Obsidians efforts continue. Still, new Vegas 2 would be fine too.
[+] curiousllama|5 years ago|reply
Microsoft is just trying to recreate console lock-in without having to subsidize hardware so much.

(1) Microsoft is trying to expand their gaming division, but struggle with first-party games. This acquisition is an acknowledgement that MSFT needs Bethesda creatives.

(2) Microsoft's big strategy right now is to build their Xbox ecosystem - they're pushing GamePass, Xcloud, etc. heavily, and trying to become Netflix for games.

I'd guess they're basically buying Bethesda's key franchises to drive GamePass subs. They'll build them quick, lock you in with a $10/month sub, and let Bethesda slowly merge with the mothership.

Short term, I'm excited because I want these new games! Long term, I fully expect Bethesda to get hollowed out.

[+] colesantiago|5 years ago|reply
Seems like a better deal than the vapid fad that is TikTok, in addition to them partnering with Oracle which looks like a marriage made in a hellstew.

Well done Microsoft and Bethesda.

[+] munificent|5 years ago|reply
Every time I see these posts, I think of Demolition Man:

> Now all restaurants are Taco Bell. Taco Bell was the only restaurant to survive the franchise wars.

Out of all the dystopian sci-fi movies, who would have thought Demolition Man would have it right?

[+] FloatArtifact|5 years ago|reply
Bethesda was already trending this way however this has deep implications. Ultimately I think it's going to slowly kill the core of the modding community as modding is forced into the platform and new users are displace the modding culture.

The modding will no longer be able to truly edit the engine itself through some reverse engineering and be forced to utilize the APl/scripting framework. Third-party tools will be locked out. Obviously this has happened already on the console platform. There's still the PC platform but that could be locked down further as well.

Think about the time and fostered talent that it took to make some of the communities amazing tools. For example script extenders for elder scrolls series. As mods are now centralized in official 'the store' the community grow around which will never allow mods like the script extender for developers to make advanced innovative mods. Even if other modding communities like the Nexus allow for that It's going to continue to fragment the community and the talent which is foster within the community. Then you throw paid mods into the picture... Thus begins the death of the open source pillar in modding.

[+] anonymfus|5 years ago|reply
"It's obvious that the current trend is creation of the one single worldwide company owning all the businesses and all the countries."

Vladimir Lenin, 1915.

[+] awill|5 years ago|reply
It's unfortunate that the Xbox Series X and PS5 are so, so, so similar. It seems stupid to have to purchase 2 nearly identical boxes. It's not just the console. You then need multiple controllers for each, and possibly other accessories (Sony has a PS5 specific headset, camera, charger, will have a PS5 VR etc.)

I've historically preferred PS exclusives (Uncharted, Spiderman, God of War, Horizon Zero Dawn), and the cross platform stuff, was a little worse than Xbox in the PS3 days, and a little better in the PS4 days (at least prior to XoX). Speaking as a biased PS4 owner, I'm happy with current layout of PS exclusives and cross platform stuff. Each new announcement like this sucks. I like DOOM and Dishonored. I liked being able to get them on PS4 and expected to get them on PS5. I don't think this will make me get an Xbox, but it sucks I'll likely be missing out on these games. I suppose what Microsoft hopes is that people like me get a PS5 and a cheaper Xbox Series S with Gamepass.

I love that the Nintendo Switch exists. It's completely different, and doesn't really compete with Playstation/Xbox. As a gamer, it makes sense to purchase a Nintendo Switch and one of either the Playstation/Xbox. I wish Xbox/Playstation differentiated somehow. I suppose Microsoft tried to do that with Kinect, but failed/gave up.

[+] aero-glide|5 years ago|reply
Great, yet another acquisition. So eventually everything will become one company or what? I like free markets, at least the idea of competition. I hate conglomerates. Am I contradicting myself?
[+] abluecloud|5 years ago|reply
microsoft are seeing that the money is going to be made in a subscription model for games. by purchasing the studios it makes it much easier for them to bundle games (possibly with exclusivity) with their gamepass.

i know i'm more likely to subscribe to gamepass (and keep it running for years) vs. the 1/2 games i buy a year.

[+] cwxm|5 years ago|reply
It's interesting. Despite all the money that these studios have, my favorite games of the past few years have all been indie games (Rimworld, Factorio) or smaller studios (Paradox Plaza games such as EUIV, Stellaris). I understand that the majority of the industry's revenue is generated from these bigger studios, but acquiring first party developers doesn't make me as too concerned. What I'm concerned about is distribution is controlled by a few parties to a higher degree on desktop, like it is on mobile.
[+] paulpan|5 years ago|reply
Having just watched Netflix vs. the World documentary (https://www.imdb.com/title/tt8407418/) last week, this acquisition seems to be inevitable as game streaming is taking off and will eventually become the defacto means of playing video games.

Microsoft's endgame is to increase the subscribers to its GamePass subscription so akin to Netflix's insatiable appetite for video content, Microsoft's will be for video games. But since IP development for games is expensive, time-consuming and hard to break into, it's arguably easier to acquire game studios entirely.

The impact is so wide-ranging: what becomes of Google Stadia and Nvidia GeForce Now? Same goes for Sony and Nintendo. The most interesting one could be Apple, who clearly does not want game streaming to be the norm.

[+] Trasmatta|5 years ago|reply
One weird thing is that Deathloop and Ghostwrite are timed exclusives on PS5. I'm assuming that'll still happen because of contracts, but I wonder if there will never be another Bethesda game on PlayStation afterwards.