Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Microsoft Makes $7.5 Billion Gaming Bet

Published 09/22/2020, 07:26 AM
Updated 07/09/2023, 06:31 AM

Microsoft (NASDAQ:MSFT) has long been a force in the gaming industry since the release of its Xbox on November 15, 2001.

In it's 2019 annual report, Microsoft showed no signs of slowing down as it continuously expands further into gaming.

Microsoft Stock Chart

"We are mobilizing to pursue our expansive opportunity in the gaming industry, broadening our approach to how we think about gaming end-to-end, from the way games are created and distributed to how they are played and viewed," Microsoft said.

Yesterday, Microsoft announced its latest move, a $7.5 billion cash acquisition of ZeniMax Media, the parent company of Bethesda Softworks, which is one of the largest privately held game developers and publishers in the world. Microsoft will gain access to Bethesda Softworks' portfolio of games, such as best-selling gaming franchises The Elder Scrolls and Fallout, as well as the company's technology and talent.

"Gaming is the most expansive category in the entertainment industry, as people everywhere turn to gaming to connect, socialize and play with their friends," Microsoft CEO Natya Sadella said. "As a proven game developer and publisher, Bethesda has seen success across every category of games, and together, we will further our ambition to empower the more than three billion gamers worldwide."

Microsoft said the acquisition will grow its creative studio from 15 to 23 teams as the deal includes publishing offices and development studios across the world with more than 2,300 employees. Microsoft expects the deal to close in the second half of fiscal year 2021 as Bethesda Softworks’ structure and leadership will remain in place.

"The world, our industry, and our company has changed a lot in the 34 years since Bethesda Softworks was first founded. Today, it changed again. And I know that brings up questions," Bethesda Softworks SVP, Global Marketing and Communications Pete Hines said. "But the key point is we’re still Bethesda. We're still working on the same games we were yesterday, made by the same studios we’ve worked with for years, and those games will be published by us."

The deal comes ahead of the highly-anticipated November 10 launch of Xbox One's successor, the Xbox Series X, which Microsoft is calling the "fastest, most powerful Xbox ever," and Series S.

In the release, Microsoft noted that the gaming industry is expected to do more than $200 billion in annual revenue in 2021. The company is proving it isn't shy about spending to gets its slice of the rapidly growing gaming market.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.