Microsoft wrote in a blog post late yesterday that it has significantly restructured its Activision Blizzard merger proposal by selling the cloud gaming rights to Activision Blizzard games to rival Ubisoft. The decision date for the move made to alleviate the concerns of the British Competition and Markets Authority (CMA) is October 18.
Purpose of sale of cloud game rights to Activision Blizzard is clear
It is intended to circumvent the barriers of the UK Competition and Markets Authority, which is trying to block the deal due to Microsoft’s potential dominance in cloud gaming. If the merger occurs, Microsoft will transfer cloud streaming rights to all current and new Activision Blizzard PC and console games to be released over the next 15 years to Ubisoft Entertainment SA, one of the leading global game publishers. The rights will be permanent.
The Ubisoft+ lineup is expanding!
We're excited to announce a new agreement that will bring Activision Blizzard games to Ubisoft+ via streaming upon the completion of Microsoft’s acquisition of Activision Blizzard!
We’ll also be licensing the games to a range of cloud streaming… pic.twitter.com/sZTnEFJedC
— Ubisoft (@Ubisoft) August 22, 2023
This means that Microsoft cannot make Activision Blizzard games exclusive to Xbox Cloud Gaming or have any say in how they are broadcast on competing services. It will also allow Ubisoft to offer Activision Blizzard cloud gaming services on Apple and other non-Windows systems.
As for the terms of the transaction, “Ubisoft will reimburse Microsoft through a one-time payment for cloud streaming rights to Activision Blizzard’s games and through a market-based wholesale pricing mechanism, including an option to support usage-based pricing.” expressions stand out.
Ubisoft stated in its blog post that Activision Blizzard games will be available for sale on various services if the deal is realized. With a single subscription to Ubisoft+ Multi Access, gamers will soon be able to play their favorite Ubisoft and Activision Blizzard games on multiple platforms including PC, Xbox consoles and Amazon Luna, and on PlayStation via Ubisoft+ Classics.
In an article published today, it was stated that the UK regulator will now review the restructured deal and make a decision by October 18. Sarah Cardell, UK CMA CEO, said: “This is not a green light. “We will carefully and objectively evaluate the details of the restructured agreement and its impact on competition, including comments from third parties.”
So what do you think about this news? You can share your thoughts with us in the comments section.
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