The European Commission approved Microsoft’s $ 7.5 billion deal to acquire ZeniMax Media, the parent company of Doom and To fall Bethesda Softworks studio. Microsoft’s deal was approved by the EU without conditions, as it “does not raise serious doubts as to its compatibility with the common market”. The acquisition required EU approval before Microsoft could finalize the deal with Bethesda and bring future games to its Xbox Game Pass subscription.
“The Commission concluded that the proposed acquisition would not raise competition concerns, given the limited market position of the combined entity upstream and the presence of strong downstream competitors in the distribution of video games,” says a statement from the European Commission. “The transaction was examined under the normal merger review procedure.”
Once the deal is fully closed, the list of original Microsoft studios will jump to 23, after the addition of Bethesda sub-studios like Dishonored Arkane developer, Wolfenstein Studio MachineGames, Doom id software maker, and The evil within Tango Gameworks studio. Microsoft appears to be planning to keep Bethesda running separately, with its existing leadership. This approach appears to have worked for Mojang, LinkedIn and GitHub, which continued to work separately after Microsoft acquired them.
Microsoft originally announced its plans to acquire Bethesda in September, promising to honor PS5’s Deathloop and GhostWire: Tokyo. Games like The Elder Scrolls: Online also “will continue to be supported exactly as it was”.
The way Microsoft handles future Bethesda titles will be analyzed “on a case-by-case basis,” according to comments from Microsoft gaming chief Phil Spencer in September. It is not yet clear how Microsoft plans to deal with the upcoming space epic Starfield.
Microsoft may not even have to release future Bethesda games exclusively on the Xbox. Just having them on the first day on the Xbox Game Pass can be a big enough attraction for players to sign up. Xbox game chief Phil Spencer has also questioned the feasibility of exclusive gaming deals recently, and Microsoft’s Xbox plans are heavily focused on the Xbox Game Pass and xCloud, reaching millions more.
In fact, Microsoft is planning to outline its plans for the Xbox later this month. It is rumored that a “future gaming” event will take place on March 23, and it could be an ideal opportunity for Microsoft to discuss the future of Bethesda, xCloud on iOS and its plans for the Xbox Game Pass.
Update, March 8 at 6:40 am (Eastern Time): Article updated with complete statement from the European Commission.