In a recent testimony at the FTC v. Microsoft hearing, Phil Spencer, the head of Xbox, revealed an important factor behind the acquisition of ZeniMax Media, the parent company of gaming studio Bethesda. According to Spencer, one of the motives for the acquisition was the potential exclusivity of Bethesda’s highly anticipated game, Starfield, on PlayStation. He stated that Sony regularly pays competitive game developers to exclude Xbox from their platform, and Microsoft felt the need to own Bethesda to stay competitive in the market.
Microsoft acquired ZeniMax Media for a whopping $7.5 billion. Upon finalizing the deal, Microsoft promised exclusives for Xbox and PC, and they have already delivered with the release of Redfall and the upcoming launch of Starfield on September 6th. In addition, it was announced that the highly anticipated Indiana Jones game from Bethesda will also be an exclusive for Xbox and PC.
However, when questioned about the exclusivity of Elder Scrolls VI, Spencer remained tight-lipped. He mentioned that it is too early to confirm the platforms for the game, considering its distant release date. This is in contrast to his previous hints that Elder Scrolls VI would be an Xbox exclusive, suggesting that Microsoft aims to keep some surprises for later announcements.
Spencer’s testimony also shed light on the competitive practices in the gaming industry, particularly regarding Sony. He accused Sony of being an aggressive and hostile competitor, citing the fact that they take a 30% cut from the revenue on their platform and then use that money, along with their other sources of revenue, to hinder Xbox’s survival. Spencer acknowledged that Microsoft has been trying to compete with Sony for the past 20 years but has failed to do so effectively.
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To level the playing field, Microsoft has taken bold steps by acquiring Bethesda and pursuing a deal to acquire Activision Blizzard. The proposed deal with Activision Blizzard is valued at an astounding $68.7 billion, demonstrating Microsoft’s determination to challenge Sony’s dominance in the gaming market.
By acquiring Bethesda and potentially acquiring Activision Blizzard, Microsoft aims to strengthen its content ownership and expand its offerings to attract gamers to its platform. These acquisitions give Microsoft a competitive edge and allow them to provide unique gaming experiences that are exclusive to Xbox and PC.
The acquisition of ZeniMax Media and the potential acquisition of Activision Blizzard reflect Microsoft’s commitment to investing heavily in the gaming industry. They recognize the importance of content exclusivity and owning popular game franchises to attract players and increase their market share.
In conclusion, Microsoft’s acquisition of ZeniMax Media, the parent company of Bethesda, was driven by the fear of potential PlayStation exclusivity of highly anticipated games like Starfield. Microsoft felt the need to own Bethesda to compete effectively with Sony in the gaming market. The acquisition is part of Microsoft’s strategy to strengthen content ownership and challenge Sony’s dominance. Additionally, Microsoft’s pursuit of Activision Blizzard further emphasizes their determination to invest in the gaming industry and provide gamers with unique and exclusive experiences on Xbox and PC.
