Microsoft confirms the purchase of Bethesda for 7.5 billion dollars

March 11, 2021 15:30

The world of video games is one of the fastest-growing economic sectors, and in 2019 is recorded a total business volume of 120 billion dollars.

This week, the markets saw some major developments within this sector, the first being the purchase of Bethesda by Microsoft for the amount of 7.5 billion dollars after approval by the European Commission.

This acquisition gives a boost to the Xbox platform, as with the purchase of Bethesda, the Xbox Game Studios family is reinforced with the exclusivity of important franchises that attract millions of users around the world.

This will undoubtedly increase Microsoft's profits, which could continue to improve the company's future profits well past the good 2020 earnings results announced January 26.

Technically speaking, after the recent falls in the Nasdaq that have dragged the technology sector, Microsoft is trading at levels close to its previous resistance level which also currently acts as its main support. If the price manages to maintain these levels, we cannot rule out a new upward momentum until seeking the previous highs. On the contrary, the loss of this level could give wings to a further correction to its 200-session moving average.

Source: Admiral Markets MetaTrader 5. Microsoft daily chart. Data range: from November 6, 2019, to March 11, 2021. Prepared on March 11, 2021, at 12:50 p.m. CET. Keep in mind that past returns do not guarantee future returns.

Price evolution in the last 5 years:

  • 2020: 41.04%
  • 2019: 55.26%
  • 2018: 18.74%
  • 2017: 37.66%
  • 2016: 12%

In addition to Microsoft’s news, the Roblox IPO was launched yesterday, during which this popular American gaming platform experienced a strong rise of almost 55%, closing in its first session at $69.50 per share.

As in the case of platforms such as Xbox or Playstation, the pandemic and confinement measures has increased the use of these platforms, and since last year, the Roblox userbase skyrocketed to an approximate total of 32.6 million users, being featured by many prominent YouTubers.

It is clear that video games are attracting more and more people, so we will have to watch this sector closely in the future.

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