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Microsoft bought ZeniMax for a slate of stellar first-party content

The deal is a huge boost for its Game Pass subscription service.

Microsoft bought ZeniMax for a slate of stellar first-party content

Microsoft gets an awful lot of prestige by buying ZeniMax, helping to boost its roster of first-party franchises.

Image: Bethesda

Microsoft announced that it bought video game giant ZeniMax on Monday for $7.5 billion. It's a lot of money, and it cements what we already knew: Microsoft is out to win the gaming industry.

ZeniMax is one of the most storied companies in gaming, counting some of the world's most beloved properties among its portfolio. It owns id Software, developer of such classics as Doom, Quake and Rage, as well as RPG-titan Bethesda, which makes The Elder Scrolls and Fallout. It also owns Arkane, developer of recent hit Dishonored.

In other words, Microsoft gets an awful lot of prestige by buying ZeniMax, helping to boost its roster of first-party franchises. Those have languished somewhat in recent years, most notably with delays to the upcoming Halo title. Heading into the next generation of consoles, Sony undoubtedly has the more attractive game lineup.

While Microsoft could make all of ZeniMax's games Xbox-exclusives in future, it seems to have bigger ambitions. It has said it will offer the Xbox versions as part of its Game Pass subscription. Microsoft is increasingly pushing the all-you-can-play subscription as the future of gaming, and one of the biggest struggles with that business model is licensing enough high-quality titles to keep users engaged. Buying ZeniMax provides an easy solution and is a clear shot at Sony — albeit one with huge upfront expense.

This is Microsoft's biggest gaming acquisition to date, dwarfing the $2.5 billion it paid for Minecraft developer Mojang back in 2014. And after Microsoft's failed TikTok bid, it can be viewed as a huge statement of intent: Though the company might have found its feet in enterprise, it hasn't forgotten about consumers, and it seems very happy to use its cash reserves to win at gaming.

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Beeper built the universal messaging app the world needed

It's an app for all your social apps. And part of an entirely new way to think about chat.

Beeper is an app for all your messaging apps, including the hard-to-access ones.

Image: Beeper

Eric Migicovsky likes to tinker. And the former CEO of Pebble — he's now a partner at Y Combinator — knows a thing or two about messaging. "You remember on the Pebble," he asked me, "how we had this microphone, and on Android you could reply to all kinds of messages?" Migicovsky liked that feature, and he especially liked that it didn't care which app you used. Android-using Pebble wearers could speak their replies to texts, Messenger chats, almost any notification that popped up.

That kind of universal, non-siloed approach to messaging appealed to Migicovsky, and it didn't really exist anywhere else. "Remember Trillian from back in the day?" he asked, somewhat wistfully. "Or Adium?" They were the gold-standard of universal messaging apps; users could log in to their AIM, MSN, GChat and Yahoo accounts, and chat with everyone in one place.

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David Pierce

David Pierce ( @pierce) is Protocol's editor at large. Prior to joining Protocol, he was a columnist at The Wall Street Journal, a senior writer with Wired, and deputy editor at The Verge. He owns all the phones.

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