Microsoft has bought Zenimax Media, the owner of game developer Bethesda, for $7.5bn.
It is hoped the deal will help Microsoft boost its Xbox gaming capabilities, with two new consoles to hit the shelves in November.
Zenimax is the parent company of Bethesda Softworks, which has created developed hits including The Elder Scrolls, Wolfenstein, and Fallout.
Microsoft said it plans to bring Bethesda’s future games into its monthly Xbox Game Pass subscription service, which now has more than 15m subscribers.
Bethesda will remain intact, with its structure and leadership to stay the same despite the change in ownership.
The deal will close in the second half of next year. Despite the hefty price-tag, Microsoft said it is expected to have only a minimal impact on its operating profit in 2021 and 2022.
“With the addition of Bethesda, Microsoft will grow from 15 to 23 creative studio teams and will be adding Bethesda’s iconic franchises to Xbox Game Pass,” Microsoft said.
“This includes Microsoft’s intent to bring Bethesda’s future games into Xbox Game Pass the same day they launch on Xbox or PC.”
The move comes after Microsoft’s bid for short-form video app Tiktok’s US operations failed earlier this month.
Tiktok owner Bytedance has selected Oracle and Walmart as its US technology partners, giving the two firms a combined 20 per cent stake in the newly-formed entity Tiktok Global.