Videogame Companies Are Poised For Profits


Today, Microsoft and Sony are the most invested in videogames than they ever have been. Last month, Microsoft announced it would pay $7.5 billion for ZeniMax Media, which makes popular game franchises Doom and Fallout. The company has estimated annual sales of $700 million. If the deal goes through, it would be the third-largest acquisition in Microsoft’s 45-year history. The only two deals larger were for LinkedIn and Skype Technologies.

Microsoft is hoping to expand the potential videogame market by offering its latest hardware on a subscription basis. Starting next month, the Xbox Series X will be available for monthly payments of $35, lowering the cost of entry, versus the all-in $500 price. A lower-end console, the Xbox Series S, will be $25 monthly. Both options come with online services, including games from EA and Microsoft.

With new hardware boasting improved graphics, storage capabilities, and improved gaming experience, its hard to imagine the videogame industry having a hard time appealing to consumers who have little entertainment options and are increasingly making the gaming console a staple of their entertainment system.

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