Bethesda + id
Posted by Raphael
Ok, so truthfully it's more like ZeniMax+id, but in any case, the company that owns and was spawned by Bethesda Softworks, developers of (amongst other things), Fallout 3 and Oblivion, have today announced they are purchasing id Software, creators of Doom, Quake, Wolfenstein, and of course, Rage.
This is a pretty big deal for both companies, and says a lot for how successful Bethesda has been in their expansion plans over the past couple of years. Clearly their publishing of Oblivion and Fallout 3 (both 4M+ selling games) has given them a pretty substantial warchest, not to mention they've probably received other outside investment to fuel their strategic growth. So, between Bethesda's mastery of the open-world RPG, and their new internal capacity for FPS IP and technology, they are well positioned to go head-t0-head with any other publisher in the industry in these specific genres.
The id side of the equation is a little harder to decipher from the outside. Not too many years ago, id turned down a $100M+ offer by Activision to purchase the company. Now, they've been absorbed (although the PR is putting a good spin on it -- id is now "becoming their own publisher" -- it's pretty clear that Bethesda is the one wearing the financial pants in this relationship) for an indeterminate sum (one must figure above the $100M they turned down from Activision). In exchange, they get financial resources they would not have had themselves (??? this part I don't get...id has always been small and uber-successful considering their incredible developer:unit sales ratio) and no longer has to try to navigate the increasingly challenging publisher landscape. Presumably technology licensing has not been a big revenue driver for them in the past few years, since we rarely hear of id tech licensees that aren't also externally developed projects of id IPs (Splash Damage's recently announced 'Brink' being a rare exception to this).
It's likely that id has had to grow teams, like every other developer in the industry, and saw themselves at over 100 developers for the first time ever and realized that at that rate they just can't afford to work on things until "they're done". Given how that strategy ultimately worked out for 3DR, perhaps there's something in the Texas air that told id they might not survive until the next great acquisition offer came along.
In any case, the number of super-devs is really dwindling. Looks like Valve and Epic are some of the last to hold out. I doubt Valve has any reason to sell (other than founders wanting to cash out) because Steam revenue alone could keep them going for a long time -- Valve is essentially already a publisher. Epic on the other hand...as long as they can keep releasing 5M unit sellers every couple of years, they'll be ok, but...the buyout offers will only get higher and sooner or later money talks...
Interesting times!

