Microsoft Selling Activision Cloud Gaming to Ubisoft for UK
Microsoft Denies AI Mistake in Ottawa Food Bank Tourist Listing
August 21, 2023
AI-generated art cannot be copyrighted rules a US Federal Judge
August 22, 2023Microsoft Selling Activision Cloud Gaming to Ubisoft for UK
Microsoft Selling Activision Cloud Gaming to Ubisoft for UK
Microsoft Selling Activision Cloud Gaming to Ubisoft for UK
In a strategic move to assuage the apprehensions of UK regulators, Microsoft has undergone a significant restructuring of its proposed $68.7 billion acquisition deal with Activision Blizzard. The company is transferring cloud gaming rights for both existing and upcoming Activision Blizzard titles to Ubisoft, a move designed to address concerns about potential competition issues in the cloud gaming sector. This reimagined agreement has triggered a fresh regulatory investigation in the UK, with results expected by October 18th.
Microsoft’s President Brad Smith Clarifies the Strategic Shift
Acknowledging the concerns raised by the UK’s Competition and Markets Authority, Microsoft’s President, Brad Smith, stated, “To effectively address the concerns about the impact of the proposed acquisition on cloud game streaming, we are modifying the transaction to encompass a narrower scope of rights.” Smith further elaborated, “This entails an agreement, set to take effect upon the merger’s completion, which will transfer cloud streaming rights for all present and future Activision Blizzard PC and console games over the next 15 years to Ubisoft Entertainment SA.”
The Implications for Cloud Gaming Exclusivity
Under the revamped deal, Microsoft will relinquish its exclusive hold over cloud gaming rights for Activision Blizzard titles on its Xbox Cloud Gaming platform. Moreover, the control over licensing terms for these games on competing platforms will also shift away from Microsoft. Instead, Ubisoft will gain control over the streaming rights of Activision Blizzard games outside of the European Union. Subsequently, these titles will be licensed back to Microsoft for inclusion in Xbox Cloud Gaming.
A Compensation Model and Expanded Opportunities
Smith outlined the compensation framework, stating, “Ubisoft will compensate Microsoft for the cloud streaming rights to Activision Blizzard’s games through a one-off payment and through a market-based wholesale pricing mechanism, including an option that supports pricing based on usage.” Additionally, Ubisoft will gain the liberty to offer Activision Blizzard titles to cloud gaming services operating on non-Windows operating systems.
Ubisoft’s Expanded Role
In this revised partnership, Ubisoft is set to incorporate Activision Blizzard games into its Ubisoft Plus Multi Access subscription, enriching the offerings available across PC, Xbox, Amazon Luna, and PlayStation via Ubisoft Plus Classics.
The UK’s Competition and Markets Authority’s Stance
Following the initial blockage of Microsoft’s deal in April over cloud gaming concerns, the Competition and Markets Authority (CMA) embarked on negotiations with the tech giant. Subsequently, the restructured deal sparked a new investigative phase, with a final decision deadline slated for October 18th. This timeline aligns with Microsoft’s extension of the deal closing date with Activision.
Microsoft’s Regulatory and Commitment Obligations
The restructuring won’t affect Microsoft’s commitments to the European Commission. The company’s array of cloud gaming deals, along with EU regulators’ approval of the Activision Blizzard deal, includes a provision for consumers in EU countries. They will have the freedom to stream all eligible Activision Blizzard PC and console games through various cloud game streaming services of their choice.
A Waiting Game
The CMA is poised to assess the revised deal in the forthcoming weeks, with a decision anticipated by the October 18th cutoff. CMA Chief Executive Sarah Cardell clarified, “Our goal has not changed any future decision on this new deal will ensure that the growing cloud gaming market continues to benefit from open and effective competition driving innovation and choice.”
Advertisement Insert:
Discover a World of Enhanced Gaming and Entertainment with JTApps+!
Explore a range of dynamic apps that elevate your digital experience:
- JTWhatsApp+: Unleash the power of enhanced communication!
- JTInstagram+: Redefine your visual journey through captivating enhancements!
- JTelegram+: Experience secure and feature-rich messaging like never before!
- JTNetflix+: Dive into an ocean of entertainment with added features!
- JTSpotify+: Elevate your music streaming with premium features!
- JTFacebook+: Connect and engage with a personalized touch!
- JTiktok+: Unleash your creativity and share memorable moments!
- JTWA Business+: Boost your business’s digital presence and communication! Unleash the potential of your devices with JTApps+ today!
