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Is 7.5 billion too much and MS overpaid?
- Thread starter DavJay
- Start date
We know games will go to steam hence gabe love for phil and the series x. So PC guys will be just fine.
vpance
Member
Even though they were private I think their valuation is based off of how much the average studio is worth these days. Everything has gone up massively in price since 2016. Was it really 2.5 back then?
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BusierDonkey
Member
Microsoft spending 7.5 billion on Zenimax is about the same as me spending $25 on a box of condoms (I am not proud to say I had to look that price up) It's not even a dent in their wallet and they'll either make it back with the studios acquired, or absorb the costs because they have over 135 billion dollars in cash just sitting around for this type of thing. For comparison, Sony's market cap is 98 billion dollars.
Hopefully they make better use these studios more than I do the condoms.
Hopefully they make better use these studios more than I do the condoms.
S
SLoWMoTIoN
Unconfirmed Member
Nope.
The Fuzz damn you!
Gold Member
a) Obviously, they've had extensive briefings on the next Fallout / Skyrim / Starfield / whatever games. The fact that they're willing to spend this much makes me incredibly positive about how those games will turn out.
b) Still, way over-priced for Gamepass filler. This is the price you pay for a company that pulls revenue from 4+ platforms, not just 1 or 2 (which is why Sony could never afford this, even if they had the money). MS will offer these games on Nintendo / Playstation platforms, and whatever else they can get money out of.
c) ...probably still overpriced, but once you factor in the "hearts and minds" of 100,000,000+ Playstation users it starts making a lot more financial sense.
b) Still, way over-priced for Gamepass filler. This is the price you pay for a company that pulls revenue from 4+ platforms, not just 1 or 2 (which is why Sony could never afford this, even if they had the money). MS will offer these games on Nintendo / Playstation platforms, and whatever else they can get money out of.
c) ...probably still overpriced, but once you factor in the "hearts and minds" of 100,000,000+ Playstation users it starts making a lot more financial sense.
Denial just not a river in Egypt any more. Microsoft did not buy these to help Sony lol. These like obsidian entertainment avowed are Microsoft only exclusives except contract obligations.
Swift Hunta
Member
Does it honestly really matter haha? When you buy your PS5 are you gonna ask your self “ did I pay to much for this under powered tower”?
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TheCrimsnFuckr
Member
The studios are still there, and I highly doubt that the leadership is going to leave... and in the midst of a pandemic and economic uncertainty, I doubt they’d want to...
Also why are you bringing in Sony? They aren’t relevant to the discussion
Laptop1991
Member
if you only look at the last 5 years of Bethesda's releases, ie their current games they have been promoting then yes i would say, if you judge it by their whole game roster and hopefully MS will push Bethesda to make and promote their older bigger selling titles, then no, they will make alot of money back on them.
itsjustJEFF
Member
Figuring out the valuation of a company has always been a weird thing. But, you would think that figuring out the valuation of a video game company might be easier, since you have sales numbers, profit margins, etc. So If they paid 7.5 Billion, it's probably, most likely the price... but, honestly its probably a few Billion over what they should have paid.
The Disney purchase you mentioned, after 4 movies, they've supposedly already pulled even on that purchase. I guess that just based on movie ticket sales, so based on just ticket sales they've pulled even aka they've brought in enough to pay off the 4 Billy. But, I wonder how much advertising added and if Merch help with all of that and they actually pulled even a lot earlier.
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existensmaximum
Member
This is why I think all the big sellers will be available on PS/Nintendo as well and not only Gamepass. It's way too much money to leave on the table.
turtlepowa
Banned
I think those highly paid experts at Microsoft know better than the average GAF user. So i say no.
Leyasu
Banned
Yep, they started negotiations friday last week and inked the deal the same day
draliko
Member
Some of you guys are just delusional, they will not go exclusive, they will simply not be on Ps, but everywhere else just like Sony did with some of their games, that's how it works but you don't like it when it backfires in your faces. Grow up and be glad that they took the ips from zenimx hands, now at least we have a chance that this games will not be the same old bug ridden fest. Has anyone thought about the idea of Id now able to work on the halo Ip? I hope to be alive they day it happens
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GaviotaGrande
Banned
Fallout 4 made 750 million on release date back in 2015. This IP alone makes the deal worth it in a long run.
Microsoft is releasing their games on Steam as well.
Mattyp
Gold Member
All those other games they now own like Doom, Prey, Wolf, Rage, Quake... Let's just concentrate on Fallout 76 but
Elysion
Banned
Remember when MS offered to buy Yahoo for 44 billion $ in 2008? I find it hard to see how they could’ve ever made that money back if the deal had went through, so 7.5 billion for Zenimax really is nothing.
For this recent acquisition to have any discernible effect, Zenimax’ big games need to come out early during the upcoming generation, say 2021 and 2022. And they need to be good, of course. If Starfield releases next year, and is high quality, and they show a trailer for TES VI during the next E3, and the game comes out in 2022, then I think there’s a good chance that MS will gain some marketshare in the west. Skyrim is the most successful RPG of all time, and if its successor is exclusive to Xbox, then that’s definitely a big deal.
If those games are still ways off, however, and won’t come out until 2023 or later, then their impact will be limited, since Sony will most likely have established a strong lead by then.
For this recent acquisition to have any discernible effect, Zenimax’ big games need to come out early during the upcoming generation, say 2021 and 2022. And they need to be good, of course. If Starfield releases next year, and is high quality, and they show a trailer for TES VI during the next E3, and the game comes out in 2022, then I think there’s a good chance that MS will gain some marketshare in the west. Skyrim is the most successful RPG of all time, and if its successor is exclusive to Xbox, then that’s definitely a big deal.
If those games are still ways off, however, and won’t come out until 2023 or later, then their impact will be limited, since Sony will most likely have established a strong lead by then.
sxodan
Member
LOL, why the hell you care how much they paid? It's not like Microsoft will ask you to help them out with cash.
To them, it's obvisouly worth it since they paid it. Doom, Elder Scrolls, Fallout - these are some of the best selling franchises of all time. They are worth every penny.
To them, it's obvisouly worth it since they paid it. Doom, Elder Scrolls, Fallout - these are some of the best selling franchises of all time. They are worth every penny.
imsosleepy
Member
people also thought they overpaid for minecraft and look at it now.. People also need to understand that microsoft wil stil own these studios in 50 years. Its really not to much.
megreotsugua
Banned
I'm bringing up Sony because almost all Sony's studios are actively hiring right now as opposed to other publishers.
Leyasu
Banned
No they won't. These will all be hooks to get you into their ecosystem. They are not looking to recoup their outlay for atleast 7 - 10 yrs.
Microsoft knew long before entering negotiations with Zenimax that next gen was already Sonys. This is the long game. They are looking to the gen after to really take the fight to Sony in regards to console marketshare. Their games studios will not be organised and churning games until 2024/25. Then the momentum will be built, and message finally out there that these games are now only available on microsofts ecosystem. Which will the set up the gen after.
Expecting monumental shifts now is wrong.
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I'll be honest, to me it seems like an under payment. They got so many franchises, legendary names and some great ID tech. Also the promise of whats to come, hopefully better then Fallout 76. I always thought Bethesda was worth much more as a company and a lot bigger, I know the last decade has been a bit rough, and they had issues with bugs, but still. They also picked up all of Zenimax, I suspect they will trim a lot of those publishing jobs though.
Also, how many new subscribers did they just manage to snag today and in the near future because of this? This acquisition will pay itself off very quickly. Much better then WB Games, although that seems cheap now doesn't it.
Also, how many new subscribers did they just manage to snag today and in the near future because of this? This acquisition will pay itself off very quickly. Much better then WB Games, although that seems cheap now doesn't it.
Starfield
Member
Star wars is one IP only
CuteFaceJay
Member
Nah, They paid 2.5 for Minecraft alone.
megreotsugua
Banned
How does thay work? Why would anyone pay $15 a month from today when the game they want to play will release in 2023-2025?
When the game comes out and it isn't a disaster like Fallout 76, you can at the least expect those to pay $15 and unsubscribe afterwards. Especially on PC, they'll pay $10, try the game and move one to their steam games again.
Halo is Back
Member
Dontuseducks
Member
This, I remember the threads were the same, 'did MS overpay in Minecraft buy'?
IDKFA
I am Become Bilbo Baggins
7.5b is a huge investment. Microsoft wouldn't be throwing this sort of money around unless they thought they would profit from it.
Personally, I'd lock down all Xbox exclusive games down as not only Xbox console exclusives, but also Gamepass exclusives. People would then have no choice but to sign up to Gamepass if they wanted to play Starfield, ES6, Doom, Forza, Halo etc etc.
Personally, I'd lock down all Xbox exclusive games down as not only Xbox console exclusives, but also Gamepass exclusives. People would then have no choice but to sign up to Gamepass if they wanted to play Starfield, ES6, Doom, Forza, Halo etc etc.
Stilton Disco
Member
They took away, the almost certainly great next Doom, new Fallout, Elder Scrolls and Starfield which only had the potential of being good, and a load of B games from Sony and Nintendo, while gaining nothing they wouldn't have already had.
For the same money, they could have created a dozen or more new AAA studios, created even more new IP's, experimented with new ideas, and created thousands more jobs.
I certainly do not think it was money well spent.
For the same money, they could have created a dozen or more new AAA studios, created even more new IP's, experimented with new ideas, and created thousands more jobs.
I certainly do not think it was money well spent.
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Explosive Zombie
Banned
Fallout, Elder Scrolls and Doom are some of the biggest franchises in all of gaming. Removing those from SONY consoles in the future is going to be huge. I've been saying on this forum constantly that SONY needs first party RPGs like a Fallout or Elder Scrolls. They seem content with open worlds and third person action games right now but this has to kick them into gear when it comes to diversifying their exclusive output.
ripeavocado
Banned
Depends on how fucked up the development of Starfield and Tes 6 is.
Considering the poor performance of Microsoft studios, ending with the Halo Infinite debacle, I fear that those problems, if present, are not going to be fixed for a long time.
Considering the poor performance of Microsoft studios, ending with the Halo Infinite debacle, I fear that those problems, if present, are not going to be fixed for a long time.
Men_in_Boxes
Snake Oil Salesman
Fallout 4 made 750 million during it's first 24 hours on the market.
Yeah should have included that. Also think fallout games have burned bit of goodwill with their customers. But still cant think zenimax as a whole being on particularly strurdy ground recently. I mean having 2000+ employees burns like 200 milloin dollars a year if we assume 10000 dollars a month cost per employee. Much depends on success of future releases.
Men_in_Boxes
Snake Oil Salesman
It sounds like Sony approached Bethesda about making Starfield a timed exclusive.
I think the industry is mighty impressed with what they've seen from Starfield. I expect it to be a huge game when it releases.
LisaMariaMartin
Banned
You better hope that son
FunkMiller
Member
Depends on the specifics of the deal, which none of us know yet, so no point speculating 
D
Deleted member 775630
Unconfirmed Member
I don't really know the financials of Bethesda, but it's probably than they are worth now, but less than they think it will be worth in the future
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Self
Member
I think people are getting a little delusional over this deal. Bethesda is a future proof gamepass acquisition.
Their mayor franchises will remain multiplatform. MS as Sony are looking for ways to earn money, not waste it.
prinz_valium
Member
And Lucas didn't do much before Disney made the new movies.
Disney bought Marvel for just $4bn and made it huge. Before it was just big
sid2vicious
Banned
pocket change for microsoft