Microsoft now owns games company behind popular titles like Doom, Fallout and Skyrim
Microsoft has bought the games company Bethesda for $7.5 billion in a landmark deal.
The acquisition is expected to boost the revenue of X-box pass, a business model similar to Netflix. X-box pass allows gamers to access over 100 games in their platform.
Bethesda is one of the largest privately held game developers. Its studio has produced hit titles such as "Doom," "Fallout," "Elder Scrolls" and "Skyrim." "Starfield," another highly anticipated title in the gaming community, is also a project of Bethesda.
According to Wedbush Securities analyst Dan Ives, the decision to acquire the games company came in the wake of Microsoft's failed bid to buy TikTok.
"While Xbox and gaming have been successful, [Microsoft] recognizes its need for consumer-based revenue growth, which we believe this deal will directly help drive along," Ives wrote in a Monday brief on the acquisition.