The EU has approved Microsoft’s $7.5 billion purchase of Bethesda

BEIJING, CHINA - SEPTEMBER 25: (CHINA OUT) CEO of Microsoft Satya Nadella gives a lecture about dream, struggle and creation at Tsinghua University on September 25, 2014 in Beijing, China. CEO of Microsoft Satya Nadella visited China for the first time on Thursday.
Satya Nadella announced the acquisition in September 2020.

  • The EU has approved Microsoft’s $7.5 billion purchase of Bethesda Softworks’ parent company.
  • Future releases will likely be Xbox exclusives and not on PlayStation, with a few exceptions.
  • The EU said there were no competition concerns for Microsoft’s largest-ever video game purchase.
  • Visit the Business section of Insider for more stories.

Despite the pandemic, video game revenue reportedly exceeded sport and film combined in 2020.

According to data from the International Data Corporation reported by MarketWatch, the industry surged 20% to $179.7 billion.

The European Union has now approved Microsoft’s $7.5 billion purchase of ZeniMax Media, the parent company of game publisher Bethesda Softworks.

Microsoft’s acquisition is the company’s largest-ever purchase in the video game sector, Expansion reported.

When the tech giant first announced its plans in September, analysts said Microsoft was looking to diversify its business with more revenue from consumer products.

“As a proven game developer and publisher, Bethesda has seen success across every category of games,” Microsoft CEO Satya Nadella said in a press release announcing the acquisition in September last year. “And together, we will further our ambition to empower the more than three billion gamers worldwide.”

Bethesda is well-known for games including “Fallout,” “The Elder Scrolls,” and “Doom.”

All of Bethesda’s games will now come under Microsoft’s Xbox Studios umbrella.

The company said in September that the release of all PS5 games already announced by Bethesda would continue, but that the remainder of the games would be looked at on a “case-by-case basis,” with some new releases moving exclusively to Xbox.

The tech giant will also be able to incorporate Zenimax’s Bethesda games into its Xbox Game Pass cloud-based video game catalog.

Microsoft first requested EU approval on January 29 and the European Commission has now ruled that it will not pose competition problems to other providers.

Read the original article on Business Insider

Nintendo is buying the North American studio behind ‘Luigi’s Mansion 3,’ a rare move for the 132-year-old Japanese company

Luigi's Mansion 3
“Luigi’s Mansion 3” on the Nintendo Switch has sold nearly 8 million copies since it launched on October 31, 2019.

  • In a rare move, Nintendo is outright buying a game-development studio: Next Level Games, the Canadian firm behind the smash-hit Nintendo Switch game “Luigi’s Mansion 3.”
  • Next Level Games and Nintendo have worked closely in the past, with Next Level taking on major franchises like “Punch-Out!” and “Luigi’s Mansion.” Their most recent collaboration, “Luigi’s Mansion 3,” has sold nearly 8 million copies since launch in October 2019.
  • The vast majority of Nintendo’s internal game development is handled within Japan, and it rarely buys third-party game studios. 
  • Visit Business Insider’s homepage for more stories.

In a rare move for the Japanese gaming powerhouse, Nintendo is buying the game studio behind the smash-hit “Luigi’s Mansion 3” for the Nintendo Switch.

Canadian studio Next Level Games will become a wholly owned subsidiary of Nintendo on March 1 – “pending satisfaction of all relevant terms and conditions” – which Nintendo says will enable, “an anticipated improvement in development speed and quality.” 

Nintendo and Next Level Games have worked together for years, going all the way back to the Nintendo GameCube with “Super Mario Strikers” in 2005. More recently, Next Level created “Luigi’s Mansion: Dark Moon” for the Nintendo 3DS, and its wildly popular followup “Luigi’s Mansion 3” for the Nintendo Switch.

The latter entry has sold nearly 8 million copies since launch on October 31, 2019, according to Nintendo.

Read more: Amid a huge lawsuit against Apple and Google, video-gaming giant Epic Games just signed a nearly $100 million deal to build a massive new headquarters

Of note, Nintendo rarely purchases third-party game studios.

The last major game studio Nintendo purchased was over 10 years ago, when it bought RPG-maker Monolith Soft. Nintendo’s first-party game development is largely handled in Japan, with European and North American arms of the company serving as localization and marketing.

If the acquisition is approved, Next Level Games will become Nintendo’s second game development studio in North America – Retro Studios, based in Texas, was purchased by Nintendo back in 2002. 

Got a tip? Contact Business Insider senior correspondent Ben Gilbert via email (bgilbert@businessinsider.com), or Twitter DM (@realbengilbert). We can keep sources anonymous. Use a non-work device to reach out. PR pitches by email only, please.

Read the original article on Business Insider