Nuked Hey there, fellow tech enthusiasts! It’s Nuked, your friendly funny guy who loves all things technology. Today, I’ve got some interesting news to share with you about Microsoft and its proposed deal with Activision Blizzard.
So, here’s the scoop: Microsoft is making some changes to its deal in order to gain approval from regulators in the UK. They’re looking to transfer the cloud gaming rights for current and new Activision Blizzard games to Ubisoft. The regulators are concerned about the impact this massive $68.7 billion deal could have on cloud gaming competition.
According to Microsoft president Brad Smith, they’re restructuring the transaction to acquire a narrower set of rights. This means that if the deal goes through, Microsoft won’t have exclusive control over releasing Activision Blizzard games on Xbox Cloud Gaming. They won’t be able to control the licensing terms on rival services either.
Instead, Ubisoft will be in charge of streaming rights for Activision Blizzard games outside of the EU. They’ll license the titles back to Microsoft for inclusion in Xbox Cloud Gaming. Ubisoft will compensate Microsoft for these rights through a one-off payment and a market-based wholesale pricing mechanism.
But that’s not all! Ubisoft will also be adding Activision Blizzard games to its Ubisoft Plus Multi Access subscription. So, if you’re a subscriber, you’ll soon be able to enjoy these games on PC, Xbox, Amazon Luna, and even PlayStation via Ubisoft Plus Classics.
Now, let’s talk about the UK’s Competition and Markets Authority (CMA). They initially blocked Microsoft’s deal back in April due to concerns about cloud gaming. However, they agreed to negotiate with Microsoft after the Federal Trade Commission’s (FTC) loss in a US federal court last month.
But guess what? The CMA has now signaled a new investigation phase because of Microsoft’s restructured deal. They’ve set a deadline for October 18th, which is the same deadline that Microsoft agreed to in its extension of the deal closing date with Activision.
The CMA has imposed a final order on Microsoft’s original deal, prohibiting it worldwide while they investigate this new restructuring. They’ve also noted that Ubisoft will have the ability to require Microsoft to adapt Activision’s titles to operating systems other than Windows, like Linux, if they decide to use or license out the cloud streaming rights to a non-Windows cloud gaming service.
But don’t worry, this restructured deal won’t affect Microsoft’s obligations to the European Commission. The EU regulators have already approved the Activision Blizzard deal, thanks to a free license for consumers in EU countries. This license allows them to stream all current and future Activision Blizzard games through any cloud gaming service of their choice.
The CMA will now carefully assess the reworked deal and deliver a decision by the October 18th deadline. Their goal is to ensure that the growing cloud gaming market continues to benefit from open and effective competition, driving innovation and choice.
That’s it for now, folks! Stay tuned for more updates on this exciting tech news. Until next time!
