What Microsoft’s purchase of ZeniMax means?
I’ve had this question recently posed to me on a Twitch stream. Yes, I stream games on Twitch in addition to penning this blog. I haven’t cross promoted my Twitch stream on this blog because blogging and gaming are mostly unrelated. However, if you’re interested in watching me game, please leave a comment below and I’ll post my Twitch channel. Let’s explore the answer to the above question.
Bethesda and Microsoft
Microsoft isn’t really a gaming company. They are a software company who produces gaming products in among all of their other hardware and software product lines. Sony is, likewise, not really a gaming company for a similar reason. Sony is mostly a content producing company who also produces gaming hardware.
Anyway, Microsoft’s purchase of Bethesda’s parent company ZeniMax likely means eventual changes to all of Bethesda’s game franchises. In fact, I’m actually surprised that the FTC has allowed such a purchase considering the negative impact it will likely have on consumer choice.
Sony and Microsoft
Let’s start with the elephant in the room. Sony and Microsoft are rivals when it comes to gaming systems. Sony has the PlayStation and Microsoft has the Xbox. Because Microsoft owns the Xbox console, purchasing large gaming companies firmly pushes this situation into conflict of interest and consumer choice reduction territory. Additionally, Microsoft’s purchase of ZeniMax before the PS5 has really launched can become an easy way to keep the PS5 from succeeding.
Why? Microsoft has designs on making the Xbox Series X console succeed and be more successful than the PS5. To do this, they want to lock Sony’s platform out of as much content as they can. How will this manifest with Bethesda’s games?
While the final outcome is entirely uncertain, the handwriting is on the wall. What I mean is that Microsoft may eventually make all of Bethesda’s newest released games exclusive to the Xbox. That means that Bethesda’s game franchises (plural) may ultimately end up playable only on the PC and on the Xbox console. Yes, that could mean that both the Nintendo Switch and Sony’s PS5 are equally negatively impacted by this purchase.
Both Sony and Nintendo could find themselves without future Bethesda titles on their gaming platforms. That could mean no more Fallout, no more Elder Scrolls, no more Doom and no more Wolfenstein will make their way onto Sony or Nintendo’s platforms. It doesn’t stop there. Titles like Bethesda’s upcoming Starfield, which has yet to be released, could be pulled from release on both Sony and Nintendo’s platforms… leaving this game only available on PC and Xbox.
Sure, it may lose Microsoft money by not releasing these games on these non-Microsoft platforms, but Microsoft will more than make up for those game sales losses by pushing more Xboxes and PCs into the home. Eventually, these games will be sold to newly purchased Xboxes and PCs more than making up for the losses in sales on those other platforms. Basically, Microsoft has an easy way to do the dirty to both Sony and Nintendo as far as Bethesda games are concerned.
Microsoft is also well aware of the leverage they hold over the gaming industry by purchasing Bethesda. More than this, Microsoft can steer new consumers onto their Xbox line of consoles and away from Sony and Nintendo consoles strictly by enforcing Xbox Exclusives.
Exclusives
Bethesda isn’t the only studio on the planet. However, Bethesda is a large studio with many very cherished video game franchises… franchises that bring in a lot of cash and drive console purchases.
While Microsoft can enforce making upcoming Bethesda games exclusive, Microsoft doesn’t necessarily have to take this step. However, knowing that Sony pretty much kicked Microsoft’s butt with the PS4’s sales, Microsoft isn’t eager to repeat that trend with the Xbox Series X. Purchasing ZeniMax gives Microsoft a definite edge. It also means Microsoft might also be eyeing the purchase of Activision, EA, Rockstar and even Ubisoft. Don’t be surprised if Microsoft snaps up some of these additional game developers as well.
By Microsoft purchasing large game studios like Bethesda, they can control which console becomes the dominant console this time around (i.e., theirs). This means even more exclusive Xbox games.
Exclusive games force consumers to buy specific hardware platforms to play these exclusive titles.
PS5
What does this news mean for a console like the PS5? It puts the PS5 at a severe sales disadvantage. Microsoft could request Bethesda to not produce PS5 games. Without Bethesda’s support on the PS5, that leaves the PS5 at a major disadvantage in the upcoming next gen gaming market.
This is part of the reason I am not purchasing a PS5 at this time. I’m waiting on how this plays out. Bethesda’s ownership by Microsoft means a very real possibility of future exclusive Xbox titles from Bethesda, with no releases on the PS5 or the Nintendo Switch.
This change would put Sony and Nintendo with a clear sales disadvantage. Sony would have to rely not on Bethesda games to drive the PS5’s sales, but instead rely on Sony Studio game releases… games they have developed themselves or by studios they own (i.e., Sucker Punch).
That doesn’t mean the PS5 will be worthless, but it means that the future of Bethesda’s games being released on the PS5 has become very unclear. In fact, I’d use the word “muddy” to describe these waters.
Here are some questions that come out of the above:
- Should I buy and Xbox Series X or a PS5? The answer to this question entirely depends on what Microsoft has planned for Bethesda. If they intend to turn all future Bethesda releases into Xbox exclusives, then the answer to this question is… buy an Xbox Series X. Even then, I’d still recommend buying an Xbox Series X because there’s a zero chance of losing Bethesda games on the Xbox. However, there’s a high probability the PS5 will lose Bethesda’s future games. The even larger answer to this question also depends on whether Microsoft plans to buy more large game studios.
- Will Bethesda lose money? The answer to this question is, no. Microsoft has deep, deep pockets. They can withstand any short term monetary losses from making Bethesda’s games exclusive to the Xbox and they can also withstand the long term needs to recoup those losses by selling new Xbox consoles and any exclusive Bethesda games. The more consoles Microsoft sells, the more games they can sell.
- Will Microsoft force Bethesda to make exclusives? Yes, they will. This is guaranteed. The question is, which games will be forced into this category? That’s still unclear. Will it only be some of Bethesda’s games, all of them, new games only or some combination of this? We don’t know. However, I can guarantee at least one of Bethesda’s games will be released as an Xbox exclusive. My guess is that most of Bethesda’s games will become exclusives.
- What about existing Bethesda games? What happens to these? Microsoft isn’t stupid. They will allow existing games to continue to be sold and operate on the PS4 and any other older non-Microsoft consoles. They won’t rock this boat. Instead, Microsoft will look at upcoming unreleased games and use the games that have never been released to become exclusive.
As a result of these questions and answers, it’s clear that if you love Bethesda’s games and you wish to play future upcoming Bethesda game franchises, you may want to wait before investing in one of these new consoles. It would suck to spend a wad-o-cash to walk home with a PS5 only to find that the one Bethesda game you thought you could play is now an Xbox Series X exclusive. That means, you’ll never see that game released on the PS5. Microsoft is very likely to make this situation a reality.
If Microsoft buys even more of these large developers, they could lock Sony’s PS5 out of the mainstream gaming market. That would push Sony’s PS5 into a situation like Nintendo (and the PS Vita), where the console maker is entirely responsible for creating compelling game franchises for their respective console on their own. Unfortunately, that’s just not enough to keep a platform like the PS5 alive.
In other words, with the purchase of Bethesda, there’s a very real possibility that this time around that Sony’s PS5 will be the underdog.
Ramifications
The bigger ramifications of this purchase is the lack of and reduction of consumer choice. This purchase can easily push Microsoft into an even more monopoly status than they already are. Locking down the biggest game developers to exclusivity for the Xbox means causing the PS5 to ultimately fail and for the same reason the PS Vita failed.
Personally, I believe this is Microsoft’s true agenda. The Xbox One’s sales paled in comparison to the PS4. Microsoft is not eager to repeat this situation with the Xbox Series X. By buying large developers like ZeniMax / Bethesda, Microsoft can all but assure the success of the Xbox Series X… and, at the same time, assure Sony’s failure of the PS5.
This purchase is honestly a one-two punch to Sony…. and for Sony, it’s gotta hurt.
Sony and Gaming
If Sony is smart, they’ll run out and buy Rockstar or Ubisoft right now. They shouldn’t wait. They should purchase one of these companies as fast as they possibly can. Rockstar would be the best choice for Sony.
Sony could then have this same bargaining chip in their back pocket just like Microsoft has with Bethesda. Should Microsoft dictate Xbox exclusivity for Bethesda’s upcoming games, Sony can do the same thing for Grand Theft Auto and Red Dead Redemption (once they own Rockstar). Ultimately, it will be a “tit for tat” situation.
In fact, Sony should buy both Ubisoft and Rockstar and have two bargaining chips. Even still, such a game exclusivity war would lead to fracturing the gaming market in half. Basically, the consumer would be forced to buy multiple consoles to play games that formerly landed on both consoles. It’s a loss for consumer choice… which is why I’m surprised the FTC hasn’t stepped in and blocked this one.
I’m guessing that because the final outcome has not yet manifested, the FTC can’t see the forest for the trees. However, once hindsight forces 20/20 vision, it will be too late for the FTC to block this purchase.
What does this mean for Fallout?
I know this is a very specific question about a very specific game. However, I was asked this very question on a Twitch stream. Let me answer it here.
If you’re a fan of the Fallout series and you’re unsure which of the upcoming console to buy, I’d recommend waiting to see what Microsoft has in store for upcoming Bethesda games.
With that said and to reiterate what I’ve said above, there is now zero chance that Microsoft will withhold Fallout for the Xbox Series X and newer Xbox consoles. However, Microsoft can easily block the release of future Fallout games from the PS5 and the Switch. This means that a consumer’s investment of cash into a PS5 could see the console without any future Fallout or Elder Scrolls or Doom games.
What that means is that should Bethesda take on the challenge of remastering Fallout 1, Fallout 2 and Fallout New Vegas for the newer consoles, these games may only find their way onto the Xbox Series X as exclusives and may not be found on the PS5.
Basically, proceed with caution if you really, really want a PS5. You may find that like the PS Vita, without titles released from Bethesda, the PS5 may end up a dying console before it really gets the chance to take off, particularly if Microsoft buys even more of these large game studios. If the PS5 does fail due to Microsoft exclusives, it will be mostly thanks to Microsoft.
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Gaming: PS5 vs XB SX Case Design Review
Since the Xbox Series X and the PS5’s case designs have now been unveiled by both Microsoft and Sony, respectively, let’s explore these case designs.
Sony’s PS5
Let’s start with the recent elephant in the room, the Sony PS5. Here are some images:
Xbox Series X
Note, I will henceforth be calling the Xbox Series X the Xbox SX. Here are images of this console:
Design Goals
Sony claims they wanted something “bold, daring and future facing” according to Sony’s CEO. Microsoft’s Xbox Phil Spencer claims they wanted the, “fastest, most powerful console ever”.
Regardless of the claims, let’s dive into the designs of these consoles. The first word that comes to mind is “dated”. Both the Xbox SX and the PS5 offer odd choices in case designs.
Let’s discuss the Xbox SX’s case design. This design has already been done and been done better… thrice, in fact. Once by NeXT and twice by Apple. Let’s look at designs past, shall we?
The above computers consist of the following:
- Apple G4 Cube (circa 2000)
- NeXT Cube (circa 1990)
- Apple Mac Pro Cylinder (circa 2012)
All three of these computers are of a very similar design to the Xbox Series X. Microsoft never can seem to come up with original designs, instead choosing to abscond with older manufacturer designs. I’m not sure what it is about Microsoft’s inability to come up with innovative case designs, but this is what we get with Microsoft: clunky, outdated designs.
That’s not to say that Sony’s case design is much better. It’s unique, but in a word, “ugly”. If you like the look of consumer routers, then I guess the PS5’s case design is what you might like.
The main problem I have with both of these designs is that neither of them are stackable. It seems with Sony, it’s all about having an oddly round shaped surface. This means when you place it horizontally, you can’t stack anything on top of it. With the PS4 Pro, it offered us a fully flat top. Unfortunately, the PS3 had that, again, oddly rounded design. It seems that Sony vacillates between flat topped systems and oddly shaped systems. If Sony’s were the only device in the home, it might be okay. Since some of us have several pieces of gear, including multiple older and newer generation consoles, we want to stack them so we have them together.
Additionally, stacking a console vertically, at least in my cabinet, is out of the question. There is no way for me to locate the Xbox SX or the PS5 vertically. In fact, I have yet to place any console vertically in the last 10 years (no space) and it’s not going to happen now. Note, I talk about alternative placement of the Xbox SX below.
Waiting… and airflow
As a result, I’m likely to wait until the second case iteration of the PS5. I’ve invested in too many first gen consoles and gotten burned. The only time where having the first edition console was a boon was with the PS3… before Sony yanked out the PS2 compatibility and several other useful features for later iterations. That was the one and only one time when it was a benefit. That didn’t excuse the horrible rounded PS3 case design, nor does it excuse the rounded case design of the PS5.
With the Xbox SX, it can at least be placed horizontally. In fact, this console design might actually fare better horizontally than vertically. Why? When standing vertical, there will be limited airspace under the bottom of the unit with which to pull air up and through. The airspace distance is probably designed well enough, but sitting close to a surface will still limit the amount of air flow.
Placing the Xbox SX case horizontally completely unobstructs the bottom intake vent and allows full and complete airflow through the unit. Placing the Xbox Series X horizontally might actually be the better way to place this unit for the best airflow possible. Sony’s case design probably won’t have an airflow problem. They usually don’t.
Sony’s choice of white case, black inner section using blue case lighting is also a throwback design problem. It has the same aesthetic as the Nintendo Wii. It’s not the same case shape, of course, but it has a similar lighting and visual aesthetic.
Form vs Function
One thing that video game console designers need to understand is that it really doesn’t matter how aesthetically pleasing a case design is. What matters is how well the console functions. That isn’t to say that we don’t enjoy seeing a pretty case, but we don’t spend time staring at it either. We want to use the unit, not stare at the case.
Therefore, the most important aspect of a video game console isn’t its case, it’s what’s under the hood and how well all of that works. Spend time making the innards work well. Make them solid and functional and with proper air flow. Put your effort and money into designing the innards and make that innovative. We don’t really care what it looks like.
In fact, as a gamer, I’d prefer the case be flat on top with airflow front-to-back or side-to-side so I can stack my other gear on top of it. A boxy looking case? Not a problem. Failing to understand this functional stacking issue is a design failure in my book. Clearly, Sony’s industrial designers weren’t considering ergonomics or functionality of its case design. For that matter, neither was Microsoft with the Xbox SX.
Case design isn’t really that important to a video game console unless it gets in the way of being installed into a cabinet… which both of these case designs do.
Vertical Design
More and more, game console creators want to produce vertical case designs. I’m not a fan. I don’t want my console sitting vertically. Not only do I have no cabinet space for this, I simply don’t like this design aesthetic. I prefer my computers to sit horizontally. This is partially to do with the cabinet I’ve chosen, but it’s partially due to the wasted space needed to place a console upright.
Case designers need to reconsider this unnecessary trend of designing for vertical installation. Any design that can be installed vertically should also be designed to install horizontally. Design for both use cases!
Blue LEDs
I’m also not a fan of blue colored LEDs. They are 1) too bright and 2) annoying as hell. At night, you simply can’t sleep with blue LED lights staring you in the face. They’re like little lasers piercing your retinas. I hate ’em with a passion. The faster we can get away from this blue LED trend, the better.
PS5 Reveal
Here’s the part where some of you may have been patiently waiting for me to chime in. Well, here it is. The PS5’s reveal was, meh. The gameplay was actually not any better looking than the PS4 Pro. The CPU and GPU might be somewhat faster, but Sony is reaching the law of diminishing returns. The PS5’s play was, well, not at all impressive. In fact, I was so unimpressed by the PS5’s gameplay so as to be disappointed.
I was expecting so much more from the PS5 and we’re basically getting another PS4 renamed PS5. It’s really unimpressive. Going back to the CEO’s remark, there’s really nothing “bold, daring or future facing” about this PS5 console. From the uninspired and knock-off case design to the PS4 graphics shoved into a new case. It’s really very unimpressive.
I’m not sure what Sony has been spending the last 2 years doing, but it’s clear they were not spending the time designing an innovative new product. The PS5 is a rehash of the PS4 in an oddly shaped case.
Innovation
What is innovation? Innovation means to come up with something which hasn’t been seen or done exactly like that before. I’d consider the Nintendo Switch innovative. I’d also consider the Apple G4 Cube innovative. Why is the Switch innovative? Because not only is the Switch a dockable home console, you can take it with you and play on the go. It’s a powerhouse well big enough to work in both situations.
I was fully expecting this same level of innovation with the PS5. Unfortunately, what we got was exceedingly underwhelming. Even the “new” PS5 controller is bland and uninspired. This controller looks pretty much like the old controller with, again, horrible blue LED lights piercing your retinas and lighting up your face. Let’s hope that this time you can actually turn these silly lights off.
The touch pad remains, but is an unnecessary and almost never used feature of the PS4’s controller. The touch pad was simply a battery suck and a gimmick. I wouldn’t mind seeing Sony get rid of that touch pad garbage. As I said, battery suck, gimmick and completely unnecessary.
Yet, here the touch pad is again, making yet another unnecessary appearance. That’s most definitely not innovative. It simply means Sony is way out of touch with how most game developers use the PlayStation’s controller. Short of a handful of early game titles on the PS4, the touch pad was almost never used, other than as a button. Simply get rid of the battery hogging touch pad and replace it with a button, like the new Xbox SX controller has. If you need a touch pad for PS4 compatibility, allow connecting a PS4 controller via Bluetooth.
See, I innovated for you there, Sony. Microsoft’s Xbox SX controller, on the other hand, is about as simplistic and utilitarian as you can get. That doesn’t make it a problem. In fact, it looks so much like an Xbox One controller, you might not even notice that there’s a new button in the middle of the controller surface. It’s a button that basically does the same thing as the touch pad button on the PS4’s controller.
I was actually hoping to see a few more buttons added to both the Xbox SX and the PS5 controller. Buttons that can be programmed for lesser used functions so that game developers don’t have to keep overloading functions onto the same buttons depending on context. It’s frustrating, for example, to play Fallout 76 and expect the square button to do something, but does something entirely different because you’re too close to an in-game object. You have to move away before the original function resumes. Frustrating.
By having more buttons on the controller, you can map these lesser used functions to these other (smaller buttons) so that button overlapping in games becomes much less common.
PC’s don’t have this problem because you have a keyboard with usually 101 keys. On a controller, you have basically 13 buttons on the face plus 4 on the shoulders. I want more buttons on my controller’s face so game developers don’t have to overload button functions anymore. Yet, no such luck on the PS5 or Xbox SX. They are still basically the same ole controllers with the same limited buttons. Yeah, basically no innovation here.
Overall
I’m planning on waiting to purchase these consoles until the second iteration of the console. Possibly even until they release a case redesigned version. You know that both Sony and Microsoft will introduce subsequent case styles in the future. I tire of buying a the first day console and then having them redesign it six months later.
My plan is not to buy the console for at least six months to 1 year after release. I’ll stick with my PS4 and Xbox One until then. Even then, it doesn’t seem that many game developers will be taking advantage of the new console hardware fully for at least that time. Anything in development today on those consoles will have been using the gaming company’s older non-optimized engine. It will take at least six months for most developers to retool their engines to be optimized for the new platform.
For this reason and for the typical dearth of features that Sony is likely to offer us come release day, I’m waiting. There’s nothing like spending $700 to play one game, then let the console sit for 6 months without using it at all. Such a waste of $700.
No, I’m not doing that again Sony. I’ll lay out money towards a console once it actually has some gaming momentum behind it and usable features to boot. Once Netflix and Hulu and all of the staples arrive to the consoles, then there will be some reasons to consider. Until that day arrives, it’s a $700 paperweight.
Pricing
Don’t kid yourself about this next part. Even though pricing hasn’t been announced for the PS5 or the Xbox SX, you can bet that after buying games, accessories, cables, chargers and the console itself, you’ll easily have spent at least $700. The price will probably be closer to $1,000. Even the PS4 exceeded the $1,000 price point if you included a PSVR unit. If there’s a VR unit on the way for the PS5, then expect the PS5’s price point to hit $1,000 to $1,500, possibly more.
We’ll have to wait on the pricing, but Sony and Microsoft have to announce it soon. Few people will place a pre-order on these units without knowing what they’ll end up paying. I won’t. It’s a fundamental aspect of gaming. You have to know the cost of the unit to know if it’s worth the price.
If both Sony and Microsoft price at or close to $1,000 for a base unit, they are probably making huge mistakes. Since the gaming price point has always been $500 or so, doubling that price approaches PC pricing territory. If you can get a PC for cheaper than a console, what’s the point in buying a console?
Microsoft and Sony must be very careful when considering their price point for these consoles. For me, I’d value these consoles at being worth no more than $600-700 (regardless of the actual costs to assemble it). If they’re priced higher than this, the console industry is going to have a real problem on its hands. Even Nintendo may feel the pinch from it. Considering that the Switch costs $299, that’s an excellent price point for such a universally useful unit. Unfortunately, Nintendo has been lax on wooing developers to the platform. So far, Nintendo has only been able to woo Bethesda. Even then, Bethesda’s involvement on the Switch has been limited.
Sony and Microsoft must be very careful with their pricing. I’m actually hoping Microsoft announces their pricing first. This will start a price war between Sony and Microsoft. Sony will have to price the PS5 at or below the same price as the Xbox SX. Sony and Microsoft can ignore Nintendo’s pricing as Nintendo has never offered a similarly competitive console entry. It’s very unlikely Sony or Microsoft will ever price their consoles at $299. At least, not the day one console.
In the future, though, the pricing will be fluid and may approach the $299 price tag… yet another reason to wait.
Let’s hope that Sony and Microsoft can choose to do the right thing with these units and price them accordingly. At least, they shouldn’t be priced any higher than the Xbox One X or the PS4 Pro. As for the design, yeah, it could have been WAY better on both consoles.
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