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Microsoft pays $7.5 billion for Fallout and The Elder Scrolls games

Microsoft pays $7.5 billion for Fallout and The Elder Scrolls games

September 21, 2020

New York (awp/afp) – Microsoft announced Monday that it has signed an agreement to acquire ZeniMax Media, the parent company of video game publisher Bethesda Softworks, creator of “Fallout” and Star Trek games, for $7.5 billion.

This major acquisition, which comes shortly before the launch of new Microsoft XBox consoles, considerably strengthens the IT giant’s position in the world of video games.

The acquisition of “one of the world’s largest private game developers and publishers (…) with +The Elder Scrolls+ and +Fallout+ among many others, Bethesda Softworks brings to XBox an impressive portfolio of games and technologies,” Microsoft said in a release.

This transaction comes just weeks before the planned November unveiling of the new Xbox Series X consoles and smaller Xbox S versions, as the Redmond-based giant hopes to get its revenge on Sony, which has sold twice as many PlayStation 4s as it has sold Xbox in recent years.

“The cultural phenomenon of gaming has made it the largest and fastest growing form of entertainment in the world,” said Microsoft, which will spend $7.5 billion in cash for the acquisition of ZeniMax.

The video game industry “is expected to generate more than $200 billion in annual revenues by 2021,” the computer giant justifies.

“Why this change?” Phil Spencer, the head of ZeniMax, founded 34 years ago in Rockville, a suburb of Washington, explains in a post on Monday.

“It will allow us to make better games. Microsoft is an incredible partner and offers access to resources that will make us a better game publisher and developer,” he said.

On Wall Street, the Microsoft share did not benefit from this acquisition, falling 1.24% around 14:30 GMT.

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