Microsoft acquires ZeniMax Media (Bethesda, id Software, Arkane + 5 more) [2020-09-21, 2021-03-09]

I suspect this is largely the motivation behind MS choices. They have a delivery problem that needs solving. They need studios that can deliver on projected deadlines for game pass to work.

 

With enough studios, slipping dates aren't as big as a concern as they'll have something coming out close enough. (not talking about financial cost to invest in longer development)

It really gives them flexibility and what will allow them to give the studios breathing room.
If they release sub par games then it's simply miss management.

The zemimax purchase really helped with so many issues MS had in one single deal.

 

Indeed. More studios means that they can take more risks on new IPs.

 

You get enough developers and games can slip without issue one the snow ball starts down the hill. Any gaps can also be filled with GAS type games. People can go off and play the new game but come back for the sea of thieves , grounded , elder scrolls online, halo infinite and the like on their game pass selection

 

MS bought pubishers/devs are primarily about growing Gamepass. I'd suggest that future revenue from that growth is more important than short term sales on PlayStation. A million sticky Gamepass subscribers are worth more than millions of one off Playstation sales.

On talent purchasing, building new studios around poached key talent is a bit of a gamble. It takes years to pay off. MS are doing it with The Initiative. Who knows if it'll work?

 

Elder Scrolls Data Deep Dive: Next-Gen and Xbox Game Pass Implications for Microsoft’s ZeniMax Acquisition

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PlayStation 4 Is the Platform of Choice for Many Elder Scrolls Players, But the Franchise is Popular Everywhere

Our data shows that 13% of gamers across the U.S., U.K., Germany, and France played an Elder Scrolls game in the past six months, making it one of gaming’s biggest franchises—despite not having any major releases in recent years.

The franchise boasts a range of games across many generations platforms, and many of the biggest Elder Scrolls games—including Skyrim and The Elder Scrolls Online—are multiplatform.

For the remainder of this article we will refer to those who played an Elder Scrolls article in the past six months as “Elder Scrolls players”. Of these, 27% played an Elder Scrolls game on PlayStation 4, which is more than on any other platform; however:

    25% played an Elder Scrolls game on PC or Mac;
    20% played on smartphone
    17% played on Microsoft’s Xbox One
    And 15% played Skyrim’s Nintendo Switch port.

Given how ubiquitous the franchise is, it’s perhaps unsurprising that players enjoy Elder Scrolls across multiple platforms. As part of our Consumer Insights – Game Franchises survey, we asked all respondents which platform they played Elder Scrolls on the most.

As you can see below, the top answer was PlayStation 4 (23% vs. 13% for Xbox One):

https://newzoo.com/insights/article...lications-for-microsofts-zenimax-acquisition/

 

Its just a poll. It could mean anything. But even with this poll at most they would drop a quarter of the player base late into the life of any game. Don't see MS having an issue. They will make the money back and more quickly and if a gamer really likes elder scrolls they will buy an xss/x or pc or stream it to their phone.




Anyway the Disney talk got me thinking. Disney was interesting but I think its theme parks and hotel business would be an issue for MS . But what about AT&T ?

It would be cheaper than Disney and you get all of Warner brothers / DC comics but you also get one of the 3 cell phone companies. That there could be a big play for MS. Have xbox and surface in every at&t store in the usa. An article i found from 2018 said there were 2000 with plans for another 1000. So now microsoft can even have a swap out / repair devices at the stores. This would make surface much more popular. They can of course make the surface phone line (Right now just a duo and i don't know about other phones )and all the surface lte devices a big in store sell.

But also then MS can attach an azure trailer at every AT&T cell phone tower serving up azure goodness like ultra low latency xcloud.

I think this would make a smarter deal then disney at any rate

 

MS already has a deal with AT&T regarding placing Azure in their local data centers.

https://www.fiercetelecom.com/telecom/microsoft-at-t-create-edge-compute-zones

 

yes in local data centers and only select ones right now and amazon is doing the same. But MS can purchase AT&T and be the only one and at every tower site in the country

 

Buying AT&T would cost $200 billion plus whatever premium they would offer during the buyback period.

 

yes i know i put that in my thread. Disney would cost 230B minimum also. Its why i said the Disney thing had me thinking about a better purchase and I think that would be at&t

 

AT&T has substantial debt of Over $150 Billion. There is no sense in spending money to acquire that debt.

 

I thought AT&T was going bankrupt at their current pace? (Exaggerated yes.) It was why WB Games were up for sale in the first place. Seems everyday I read about DirecTV losing more subscribers by the million.

If it is going to cost in the same ballpark, I would rather have Disney personally. Nothing like the $160B in debt, just around the low 40's net I think. I like the stores idea with ATT, but if it is down to IP and long term prospects I would rather have Disney far and away. WB/ DC vs Disney/ Marvel/ Star Wars in IP. The parks and cruise ships certainly are not MS bailiwick, but they don't have to be. That will come back and the current management was already running it in the black - pre-COVID. ATT wins with its store count/ local physical presence and the fact they have working games studios, but eveything else to me does to Disney. Not really sure about the cell phone service. Net Neutrality may well make a huge comeback in the next couple of years and exempting your own services from bandwidth caps may no longer be allowed.

Eh, all just fun speculation anyway.

 

You think that for $350bn they could just build what they need as well.

 

i did not know that. Wonder how much Disney is in debt

 

Around $64 Billion, but much better balance wise than AT&T. I think its $54 billion of long term debt and $11 billion of short term raised to cover operating shortfalls due to Covid19.

Disney is slow playing Hulu. They don't want to expand it since the price of their buyout of Comcast's 33% shares will be set in 2024. If they expand it or improve on its outlook, they'll just end up having to pay more. Once that purchase is complete, they can take it international, greatly expanding its value, like they've done with Disney+.

 

Or roll Hulu into Disney+

 

I think they like having Hulu separate because of the targeted ads income. Reports say they make $15 a month from ads for those who pay for the $6 ad-filled service. So that would have income of $21 a mi th for basic, compared to only $12 a month for premium. I think they should (revert back) roll out a free level of service like Peacock has. Then the $6 with Ads tier would expand whats included to larger back catalog and some premium titles, and finally still have the $12 no-ads level.

I do wish more was included in Disney+, but they want to keep it family focused.

 

All these ideas are way too expensive.

 

That's what I thought with $2 Billion for WB games, but then Microsoft did a deal of $7.5 Billion for Zenimax Media.