Microsoft's Xbox Game Pass Becomes Biggest Cloud Streaming Service by Far, Acquires Bethesda to Become Even Bigger

I'm pretty convinced cloud streaming is going to be the future of online games, especially virtual worlds, so today's acquisition by Microsoft of Skyrim developer Bethesda is worth keeping an eye on:

As the gaming industry transforms from a device-centric era to a player-centric era powered by new technology that provides the freedom to play with friends anywhere on any device, Microsoft (Nasdaq: MSFT) on Monday announced plans to acquire ZeniMax Media, the parent company of Bethesda Softworks, one of the largest, privately held game developers and publishers in the world. Creators of critically acclaimed and best-selling gaming franchises including The Elder Scrolls and Fallout among many others, Bethesda brings an impressive portfolio of games, technology, talent, as well as a track record of blockbuster commercial success, to Xbox. Under the terms of the agreement, Microsoft will acquire ZeniMax Media for $7.5 billion in cash.

The very announcement hints at streaming as the future: The end of buying expensive gaming PCs and consoles, and rather, using cloud streaming and edge competing to jump into virtual worlds from any device, even an old laptop or mobile phone. And with this purchase, Microsoft has a huge content advantage to add to its fast-growing subscriber base:

Microsoft is revealing today that it now has 15 million Xbox Game Pass subscribers. That’s up 50 percent from the 10 million the company previously disclosed back in April. Xbox Game Pass is a subscription service that offers access to a growing selection of more than 100 Xbox games for $9.99 per month. 

Xbox Game Pass has been bolstered recently by the addition of Bungie’s Destiny 2 title, xCloud game streaming, and Microsoft’s ZeniMax Media acquisition, the parent company of Doom and Fallout studio Bethesda Softworks. There is a variety of ways to subscribe to Xbox Game Pass across both console and PC, with the ability to just play games streamed through the cloud to an Android device.

Compare and contrast with Google Stadia, as metaverse analyst Matthew Ball did:

If Google were serious about Stadia, it would have bought ZeniMax (or other large publishers) by now. Microsoft already had a large collection of studios, is the market leader in AAA subscriptions and cloud game subscribers. Playing to win while Google dabbles in a $130 billion business. 

Metaverse advantage: Microsoft.

Hat tip: Nodoka Hanamura.

Pictured: Iris Ophelia's "4 Reasons Why Skyrim Is Like Second Life As A Single-Player RPG".

Comments

[Fionalein]

So MS owns Bethesda now? ... Pot meet kettle. Todd Howard has about the same reputation as a game designer as Bill Gates had for OS design.