Bethesda Softworks
Bethesda Softworks LLC is an American video game publisher based in Rockville, Maryland. The company was founded by Christopher Weaver in 1986 as a division of Media Technology Limited. In 1999, it became a subsidiary of ZeniMax Media. In its first 15 years, it was a video game developer and self-published its titles. In 2001, Bethesda spun off its in-house development team into Bethesda Game Studios, leaving Bethesda Softworks to focus on publishing operations.
In March 2021, Microsoft acquired Bethesda's parent company ZeniMax Media, maintaining that the company will continue to operate as a separate business. Part of the Microsoft Gaming division, Bethesda Softworks retains its function as the publisher of games developed by the different studios under ZeniMax Media.
History
1980s
Before founding Bethesda Softworks, Christopher Weaver was a technology forecaster and a communications engineer in the television and cable industries. After finishing graduate school, he was hired by the American Broadcasting Company, where he wrote several memos about "the importance of alternative distribution systems and how satellites and broadband networks would impact network television", which landed him the position of manager of technology forecasting. After several national magazines quoted his articles on "the exciting prospects for cabled distribution systems", he was recruited by the National Cable Television Association and created its Office of Science and Technology, where he helped design high-speed data communication systems for several member companies of the association. Eventually, Weaver became the chief engineer for the United States House Energy Subcommittee on Communications and Technology, where he influenced legislation that affected the telephone, television, and cable industries.In the meantime, Weaver also founded VideoMagic Laboratories with a friend from the Architecture Machine Group at the Massachusetts Institute of Technology. They authored and assembled a 400-page business plan to commercialize their prior lab work and, through the Industrial Liaison Office at MIT, came in contact with a wealthy family in the electronics industry that provided VideoMagic with venture capital. The company developed several technologies, including location-based entertainment systems, that Weaver deemed "radical and cutting-edge" but put out prematurely, causing little commercial return. The funding family, having financial issues of its own, dropped out of the venture and sold off some of VideoMagic's properties. After leaving the House Subcommittee some years later, Weaver established Media Technology Associates, Limited in June 1981. The company provided engineering and media consulting for private companies and government organizations. Media Technology had offices in Maryland and New York.
At Media Technology, Weaver worked with Ed Fletcher, an electrical engineer with whom he had collaborated at VideoMagic, on video games for LaserDisc-based systems until that industry crashed in 1984. While waiting for potential new contracts, the company acquired an Amiga personal computer with which the two began to experiment. Fletcher was a fan of American football and suggested that they develop a football video game for the system, which Weaver supported despite no interest in the sport. Fletcher developed the game, later named Gridiron!, out of Weaver's house in Bethesda, Maryland, in roughly nine months. His initial approach was to use lookup tables to map player inputs to predetermined outcomes. Weaver disliked this concept and, at his behest, he and Fletcher devised a more realistic, physics-based system. No artists or animators were involved in the project, which gave the game a sub-par graphical presentation for the time.
Weaver formed Bethesda Softworks "on the proverbial kitchen table" of his Bethesda home as a division of Media Technology on June 28, 1986. The formation was described as an experiment "to see if the PC market was a viable place to develop games". Weaver originally named the company "Softwerke" but found that the name was taken by a company based in Virginia. Weaver and the owner of that company agreed to co-exist rather than fight over the title, and Weaver changed the name of his company to Bethesda Softworks. He had considered creating a unique name, such as one using the word "magic" after a quote from Arthur C. Clarke, but "Bethesda Softworks" ultimately stuck. Unlike VideoMagic, Bethesda Softworks was entirely self-funded, starting with roughly, and was not attached to any business plan. Gridiron! was released as the company's first game later in 1986 for the Amiga, Atari ST, and Commodore 64 systems. The initial release of a few hundred copies distributed in plastic bags was sold out within one week, to the surprise of the team.
Gridiron! scored respectably in the gaming press. Electronic Arts was working on the first John Madden Football, and hired Bethesda to help finish developing it, and acquired distribution rights for future versions of Gridiron!. In June 1988, after no new cross-console version of Gridiron! had been released, Bethesda stopped work on the project and sued Electronic Arts for, claiming EA halted the release while incorporating many of its elements into Madden. The case was resolved out of court.
Courteney Cox, later known for her role in the sitcom Friends, worked at the publisher briefly in the 1980s.
1990s
In 1990, the company moved from Bethesda to Rockville, Maryland. That same year, the company released By Design, a graphic enhancing software.By February 1993, the company employed 40 people.
The first game Bethesda published and developed, based on a popular film franchise, was The Terminator for MS-DOS. The title was released in July 1991, coinciding with the theatrical release of the film Terminator 2: Judgment Day.
In 1994, the company released its best-known project at the time, The Elder Scrolls: Arena. The first game in The Elder Scrolls role-playing video game series was the work of Programmer Julian LeFay, Director and Producer Vijay Lakshman as well as others. Several sequels have been released since including The Elder Scrolls II: Daggerfall, which was released in September 1996.
Between 1994 and 1997, Bethesda was developing a space combat game titled The 10th Planet. It was a collaboration between Bethesda and Roland Emmerich's Centropolis Entertainment. During development, Centropolis chose to stop working on the game due to the company's commitments to its films. The project was never released.
In 1995, Bethesda Softworks acquired Noctropolis developer Flashpoint Productions, which Brent Erickson had founded in 1992.
In July 1995, Bruce Nesmith joined Bethesda as Senior Producer.
In August 1995, Bethesda Softworks launched its website on the World Wide Web.
In 1997, Bethesda acquired XL Translab, a Washington, D.C., graphics company that stemmed from the Catholic University School of Architecture and Planning. It was moved to Bethesda Softworks' Rockville headquarters. XL Translab had previously done work for PBS and Fortune 500 companies. By 1996, Bethesda Softworks had become the third-biggest player in the privately held PC publishing industry after LucasArts and Interplay Entertainment with 75 employees by that year and revenues of $25 million by 1997.
In June and July 1997, Bethesda announced a partnership with CBS Enterprises to produce the first-ever true companion PC series of games for the television series Pensacola: Wings of Gold. By December 1997, the first CD-ROM game was still in production.
In 1997 and 1998, Bethesda released two The Elder Scrolls spin-offs based on Daggerfall code,Battlespire and Redguard, neither of which were as successful as Daggerfall and Arena. The downturn in sales affected many of their games, and the company considered filing for bankruptcy as a result.
In October 1999, Pete Hines joined Bethesda to head up its marketing department, running it as what he described as a one-man band. At the start of his tenure, the company had reduced to around 15 people in its Rockville headquarters.
In 1999, Weaver and Robert A. Altman formed the holding company ZeniMax Media. In an interview with Edge, he described the company as being a top-level administrative structure rather than a "parent company" for its holdings, explaining that "ZeniMax and Bethesda for all intents and purposes are one thing. Bethesda has no accounting department, we have no finance, we have no legal, our legal department our financial department is ZeniMax, we all operate as one unit." According to the designer Bruce Nesmith, Altman was principally interested in Bethesda's web development business at Vir2L Studios, not the game development aspect. ZeniMax acquired Media Technology in July 1999 and Bethesda Softworks was reorganized as a division of ZeniMax. By then Bethesda employed nearly 100 people.
2000s
In 2001, Bethesda Game Studios was established as the development team, leaving Bethesda Softworks to focus on all publishing operations of ZeniMax Media.In 2002, Weaver stopped being employed by ZeniMax. He later filed a lawsuit against ZeniMax, claiming he was ousted by his new business partners after giving them access to his brand and was owed in severance pay. ZeniMax filed counterclaims and moved to dismiss the case, claiming Weaver had gone through emails of other employees to find evidence. This dismissal was later vacated on appeal, and the parties settled out of court. Weaver remained a major shareholder in the company; as of 2007, he said that he still owned 33% of ZeniMax's stock. Providence Equity bought 25% of ZeniMax's stock in late 2007, and an additional stake in 2010.
In 2004, the Fallout franchise was acquired by Bethesda Softworks from Interplay Entertainment and the development of Fallout 3 was handed over to Bethesda Game Studios. Fallout 3 was released on October 28, 2008. Five downloadable content packs for Fallout 3 were released in the year following its release — Operation: Anchorage, The Pitt, Broken Steel, Point Lookout, and Mothership Zeta. Obsidian Entertainment's new Fallout title, Fallout: New Vegas was published in 2010. Fallout 4 was released on November 10, 2015.
Between 2004 and 2008, ZeniMax's subsidiaries Mud Duck Productions and Vir2L Studios released four bowling games for various platforms — AMF Bowling 2004, AMF Xtreme Bowling 2006, AMF Bowling World Lanes, and AMF Bowling Pinbusters!.
In January 2006, Bethesda acquired the rights to the Star Trek series of video games. The first game published by the company was Star Trek: Encounters, released in 2006.
In September 2009, Bethesda filed a lawsuit against Interplay Entertainment, after being unsatisfied with Interplay's development of the Fallout massively multiplayer online game project. Bethesda stopped funding the project, and Interplay was forced to abandon work on it.
Between 2007 and 2010, Bethesda raised in new capital from Providence Equity Partners to fund expansion efforts. In February 2008, the company opened a European publishing arm in London, named ZeniMax Europe, to distribute titles throughout UK/EMEA territories under the Bethesda Softworks brand. This was followed in by opening publishing offices in Tokyo, Frankfurt, Paris, Eindhoven, Hong Kong, Sydney and Moscow in 2008, 2010, 2012, 2013 and 2018 respectively.
On June 24, 2009, ZeniMax Media acquired id Software, whose titles, including Rage, would be published by Bethesda Softworks. Between 2009 and 2012, the company expanded publishing operations, with games from independent third-party developers such as Rebellion Developments's Rogue Warrior, Artificial Mind and Movement's Wet, Splash Damage's Brink, and inXile's Hunted: The Demon's Forge.