Microsoft restructures Activision deal, to promote Activision cloud gaming rights to Ubisoft because it appears for UK approval

In a large change, Microsoft has restructured the proposed deal to amass Activision Blizzard – in response to regulatory hurdles, the tech titan will likely be transferring the cloud streaming rights for present and new Activision Blizzard video games to Ubisoft, the identical firm that gave us widespread gaming franchises similar to Murderer’s Creed and Watch Canines. This comes after the Competitors and Markets Authority (CMA) – the antitrust regulator within the UK – confirmed a previous determination to dam the $68.7 billion blockbuster acquisition of Activision Blizzard by Microsoft.

Microsoft’s restructured proposal seeks to handle the CMA’s apprehensions by redirecting cloud streaming rights for each present and forthcoming Activision Blizzard video games (on console and PC alike) outdoors the European Financial Space (EEA) to Ubisoft for the following 15 years. Underneath this settlement, Microsoft wouldn’t maintain unique management over cloud gaming rights, mitigating worries of market dominance and diminished innovation. The cloud streaming rights to Activision’s video games outdoors the EEA will likely be offered to Ubisoft earlier than Activision Blizzard is totally acquired by Microsoft.

The CMA’s best concern stemmed from the worry that the merger of a cloud gaming business chief (Microsoft) with a significant recreation developer (Activision Blizzard) would possibly stifle competitors and restrict client alternative. The restructured deal strives to create an atmosphere the place a number of gamers can provide Activision’s content material, fostering a market that thrives on innovation and caters to various client preferences. In easy phrases, the restructured deal will be sure that Microsoft won’t be able to launch Activision Blizzard video games solely on Xbox Cloud Gaming, nor can the tech big have a management over the licensing phrases of Activision Blizzard video games on different providers.

In response to this improvement, the CMA has already opened a brand new investigation into the restructured proposal – an investigation that comes with a deadline of October 18. The CMA famous that Ubisoft should require Microsoft to adapt Activision’s titles to working methods aside from Home windows for a charge as properly, in case the developer decides to make use of or license out the cloud streaming rights to Activision’s titles to cloud gaming providers that runs a non-Home windows working system.

“Underneath the restructured transaction, Microsoft won’t be able both to launch Activision Blizzard video games solely by itself cloud streaming service Xbox Cloud Gaming – or to solely management the licensing phrases of Activision Blizzard video games for rival providers,” Microsoft vice chairman and President Brad Smith commented on the matter. “We imagine that this improvement is constructive for gamers, the development of the cloud recreation streaming market, and for the expansion of our business,” he added.

Ubisoft emerges as a pivotal participant within the revised deal. The French recreation developer is ready to amass the cloud streaming rights for Activision’s video games, thereby turning into an important content material provider for numerous cloud gaming providers. Ubisoft will likely be licensing Activision’s content material to a number of cloud gaming suppliers below totally different enterprise fashions, together with subscription providers. In return, it should make a one-off cost to Microsoft by a market-based wholesale pricing mechanism for the cloud streaming rights to Activision Blizzard’s video games, together with an possibility that helps pricing primarily based on utilization, Smith elaborated.

“The Ubisoft+ lineup is increasing! We’re excited to announce a brand new settlement that can deliver Activision Blizzard video games to Ubisoft+ by way of streaming upon the completion of Microsoft’s acquisition of Activision Blizzard! We’ll even be licensing the video games to a spread of cloud streaming and subscription providers,” the corporate introduced in a put up on X on Tuesday.

The Ubisoft+ lineup is increasing!

We’re excited to announce a brand new settlement that can deliver Activision Blizzard video games to Ubisoft+ by way of streaming upon the completion of Microsoft’s acquisition of Activision Blizzard!

We’ll even be licensing the video games to a spread of cloud streaming… pic.twitter.com/sZTnEFJedC

— Ubisoft (@Ubisoft) August 22, 2023