sublimit
Banned
That is assuming the next TES will be as successful as Skyrim which is a big "IF" IMO. Trends and people's tastes change. What was massively popular 10 years ago does not guarantee that it will still be as popular.
Is 7.5 billion too much and MS overpaid?
- Thread starter DavJay
- Start date
blastprocessor
The Amiga Brotherhood
Will take years to payoff surely?
Their games will be on xbox gamepass as well.
Their games will be on xbox gamepass as well.
Fox Mulder
Member
MS has the money and wanted to drop a bomb that shows how serious they are about gaming. Sony or Nintendo aren't going to buy a big company for 7 billion dollars.
Xbox needed a jolt as people were still laughing about Halo or how the ps5 was going to be the best selling thing ever made by humans.
Xbox needed a jolt as people were still laughing about Halo or how the ps5 was going to be the best selling thing ever made by humans.
Brofist
Member
At this point that's like betting against a Rockstar game. A new TES will sell by the truck load.
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Hezekiah
Banned
Comparing GamePass to Windows ffs
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Sony
Banned
The spent roughly 1/7th of their yearly profit on this acquisition. How is that pocket change? Other branches of Microsoft need investment too.
Anyone who thinks Microsoft can spend money like this willy nilly is a fool.
Birgitte2004-2
Banned
Skyrim was reported at 1.4 billion in revenue in 2016. if it is at 1.5 billion now, It'd still take 5 Skyrims to make back the 7.5 in revenue. Did they just buy 5 future Skyrims?
If they immediately cancel all PS5 related projects like they might, this deal seems even worse, as part of their earning potential was Playstation sales.
I kind of understood Minecraft because beyond the game being huge the toys and other stuff were huge too. Elder Scrolls Lego incoming? Do people actually buy the Fallout bobbleheads and such? Maybe they do and I just don't know it.
If they immediately cancel all PS5 related projects like they might, this deal seems even worse, as part of their earning potential was Playstation sales.
I kind of understood Minecraft because beyond the game being huge the toys and other stuff were huge too. Elder Scrolls Lego incoming? Do people actually buy the Fallout bobbleheads and such? Maybe they do and I just don't know it.
TheDreadLord
Member
ES is one of the biggest RPGs franchises nowadays. They also bought ESO which has a quite active user base. So I think it is probably worth, but it is a long term investment.
KiNeMz
Banned
Surely they have done their due diligence on this investment. This would have been in discussions for months if not years. Microsoft aren't stupid. The other thing that would be interesting to note is what division or budget of Microsoft this went against. Did the Xbox unit of Microsoft fund this? Or was it used from other funds within Microsoft.
Microsoft have to know what projects are in the pipeline at all the Zenimax studios, and there must be some items there they are comfortable with they possible earnings potential. But as they are using this as a big dick move in this critical initial time of a next gen changeover, there has to be return on investment. Thats always the goal. ROI on 7.5 billion is going to take time. Just the annual capex and opex costs of all these studios is going to be tremendous. SO they need to keep all these studios running, plus make profit to make the return. Its going to take time. 1 Bethesda game is not going to do this. Multiple games over a period of time will. But thats also by making sure Bethesda games are sellling in alll possible markets, inc PS. Its also something to consider why Zenimax agreed. Was there major debt? Does Zenimax not see potential of 7.5 Bill in the next 10 years? All some interesting questions to ponder.
Some exciting news. This is why i love gaming news.
Microsoft have to know what projects are in the pipeline at all the Zenimax studios, and there must be some items there they are comfortable with they possible earnings potential. But as they are using this as a big dick move in this critical initial time of a next gen changeover, there has to be return on investment. Thats always the goal. ROI on 7.5 billion is going to take time. Just the annual capex and opex costs of all these studios is going to be tremendous. SO they need to keep all these studios running, plus make profit to make the return. Its going to take time. 1 Bethesda game is not going to do this. Multiple games over a period of time will. But thats also by making sure Bethesda games are sellling in alll possible markets, inc PS. Its also something to consider why Zenimax agreed. Was there major debt? Does Zenimax not see potential of 7.5 Bill in the next 10 years? All some interesting questions to ponder.
Some exciting news. This is why i love gaming news.
LarknThe4th
Member
I think they underpaid honestly
They got 2 huge IPs(Fallout, ElderScrolls) 1 Historical and revered Hardcore IP(Doom) and a bunch more
They also got all them studios!
They got 2 huge IPs(Fallout, ElderScrolls) 1 Historical and revered Hardcore IP(Doom) and a bunch more
They also got all them studios!
rofif
Banned
8.5 for skype... and the damn thing freezes every time someone calls me.
Arachnid
Member
And Bethesda was valued at 3 billion earlier this year. I feel like all the little acquisitions included in the deal near even out the buying price.
Veysetia
Member
Im not sure why it matters, they bought several IP's in that mix which have an unlimited potential. They can make a heck of a lot more with it than Bethesda ever could, M$ has the clout, resources and experience to make more things happen than Bethesda/Zenimax could on their own.
Snakeeyes646
Member
Salty. But no not too much, not for all them amazing studios.
R3claimer117
Member
The big thing that people are missing here is that they now own ID tech which they could move all the games going forward to and save them a ton on licensing engines.
Victor Omega
Member
Lol
Hideous Snake
Gold Member
Came to post the exact same thing. Does people not realise how massive MS is?
Victor Omega
Member
HarryKS
Member
It will cost them 7.5 billion...
But better have 7.5 billion amortized than being dead money as cash on hand if they don't use it as a buffer.
Especially if they paid with over seas money they can't bring to the USA for stock holders any ways with high taxes. These crazy Microsoft deals are usually paid with that money its basically house money sitting there to try crazy stuff with.
HarryKS
Member
That's their market cap, not what they have.
Astral Dog
Member
No amount will ever be enough for DOOM 
Von Hugh
Gold Member
Multiple IPs and 2300+ personnel. Probably was worth it.
AphexTwunt
Member
This thread is gold... not only will the games remain multiplat but PS5 will end up as lead platform..... my fucking sides, ahaahaha.
Jadsey
Member
This.
Let them have their day though. They have had no good news for over a decade now.... they just can't cope.
Larogue
Member
They own a portion of their own stocks, which can be diluted for cash. Or issue completely new ones, anytime they desire more cash, basically they can manipulate that $1.6 Trillion however they want.
HarryKS
Member
Dude, stop saying silly stuff. While still within the realm of what is possible, it is firmly ensconced in the domain of moronic.
That's not how securities work.
These kinds of acquisitions are never fair. Zenimax/Bethesda is a healthy, self sustained company and in these kinds of cases you always need to pay way above market price to make it worth.
I doubt Zenimax/Bethesda itself will ever make back 7.5B in profit. It's more of an investment for Xbox brand as a whole.
I doubt Zenimax/Bethesda itself will ever make back 7.5B in profit. It's more of an investment for Xbox brand as a whole.
Larogue
Member
Breaking news for you, companies do buy & sell their own shares for cash flow all the time, it's perfectly legal and accepted practice.
Glad that you've learned something new today.
NiiloPielinen
Member
"Not bad Sony, you made me use like 7,5% of my power"
MarkMe2525
Banned
My gamepass library is gonna be stacked so I could care less how much they spend.
GetemMa
Member
Maybe but if it doubles sales of xbox consoles and game pass subs it won't matter. I think it does that. There's no way MS let's Elder Scrolls 6 or Fallout 5 or Doom or Dishonored 3 onto the PS5. I've seen a lot of desperate sounding takes on this acquisition relating to the exclusivity of Bethesda games. It's beyond wishful thinking. MS doesn't spend 7.5 billion without giving customers a reason to move to their platform. Don't over think this. "case by case" means they might throw some ports Nintendo's way at best. Sony won't get a sniff.
Once again PC stays winning.
Once again PC stays winning.
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aries_71
Junior Member
Don't really think is 7.5%... probably lot less. Gaming was always a third rate objective for this people. Compare to what they spend on things like Azure or Bing.
showernota
Member
When you consider the amount of IPs Bethesda holds, I think MS will at least break even on the investment.
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LittleBusters
Banned
I predict Microsoft makes back the money in 5 years, like they did with Mojang.
user friendly
Member
It's nice to see XBOX fans happy again. Exciting times for sure!
LittleBusters
Banned
This deal isn't just about gaining exclusivity for Zenimax IPs, but all the technology as well. Now all the other XGS can benefit from that technology sharing.