The move marks a significant purchase in the gaming world and strengthens Microsoft's Xbox lineup ahead of a new launch in November.
"You can't wake up one day and say, 'Let me build a game studio,'" Nadella said in an interview after the company announced its $7.5 billion cash purchase of ZeniMax Media, which owns several industry-leading game developers, including Bethesda Softworks and Id Software. "The idea of having content is so we can reach larger communities."
"That's why Microsoft will consider buying even more video game companies in the future, he said, and why it continues to invest in its Xbox Game Pass subscription service.
"Content is just the incredible ingredient to our platform that we continue to invest in," Xbox head Phil Spencer said in that same interview. "This doubles the size of our creative organization."