Microsoft’s $7.5 billion purchase this week of ZeniMax Media, whom owns Bethesda Softworks, gives the company something it has long been in need of and which proved a disaster last generation – namely major new AAA game titles.
Though it has a new console coming out, with pre-orders going up yesterday, it is relatively secondary as Microsoft is playing the long game with its Xbox Game Pass service being lined up as the company’s long-term cash cow in the years and potentially decades to come.
The company is betting Game Pass and subscription gaming will become the main way players get their games. So far 15 million people are subscribed to the service, that number jumping up from 10 million at the end of April this year.
Mat Piscatella, executive director of gaming at analysis outfit NPD Group, tells The Wrap: “It is safer to assume that future titles will be coming to the Xbox Game Pass service, which is very likely more important for the future of the ecosystem than selling particular pieces of console hardware. However, I’m also sure that if this acquisition helps sell more Xbox Series systems that Microsoft sure wouldn’t mind.”
To keep people subscribed they need content, and more specifically the kind of AAA titles that their recent presentation seemed to be lacking in bar new “Halo” and “Fable” sequels (with the former meeting a rough reception).
The purchase gives them that with access to the “Dishonored,” “Doom,” “Elder Scrolls,” “The Evil Within,” “Fallout,” “Prey,” “Quake” “Rage” and “Wolfenstein” franchises.
The obvious question that has arisen is over exclusivity with CEO Satya Nadella saying the company “will most likely evaluate titles exclusivity to Xbox on a case by case basis” but adds that: “when we talk about our content, we want our content to be broadly available.” Phil Spencer has confirmed Xbox plans to “honor the PS5 exclusivity commitment for “Deathloop” and “Ghostwire: Tokyo” (via Jason Schreier).
Xbox Game Pass subscribers currently pay $10-$15 per month for console access, that fee giving players access to over 100 games in the Xbox catalog and occasional discounts on online purchases. It is currently competing with several other game streamers in place including EA Play, Google Stadia, NVIDIA GeForce Now, Apple Arcade and Playstation Now.
