Microsoft (NASDAQ:MSFT) is beefing up its game library as it prepares for the next console wars with the $7.5 billion acquisition of ZeniMax.
ZeniMax is the parent company of Bethesda, which is responsible for the publishing of many AAA video games. That includes major series such as Fallout, The Elder Scrolls, Doom, Quake, Wolfenstein, and Dishonored.
Microsoft says that it will be using cash to fund its acquisition of Bethesda. It also points out that it expects the deal to close during the second half of 2021. It’s also expecting a “minimal impact to non-GAAP operating income in fiscal years 2021 and 2022,” as a result of the acquisition.
It doesn’t look like Microsoft is planning for any major changes at Bethesda. The company notes in its press release that the current leadership structure of the company will remain in place after the acquisition is complete.
Microsoft notes that one of the major benefits of the ZeniMax acquisition is bringing Bethesda games to Xbox Game Pass. This is the company’s subscription service that offers users a wide variety of games to play. It currently has more than 15 million subscribers and is available on Xbox and PC.
With its acquisition of ZeniMax, Microsoft says it plans to release Bethesda games on Xbox Game Pass on the same day of release. Offering up brand new games on Xbox Game Pass is one of the ways the company is looking to increase its subscriber count.
MSFT stock was down slightly as of Monday afternoon.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.
