Microsoft announces to sell Activision cloud gaming rights to Ubisoft
- Deepanshu Sharma
- August 22, 2023 (UPDATED: August 22, 2023 17:15 IST)
Microsoft has announced that it is restructuring its proposed $68.7 billion acquisition of Activision Blizzard in order to appease regulators in the UK.
Microsoft has announced that it is restructuring its proposed $68.7 billion acquisition of Activision Blizzard in order to appease regulators in the UK. The new deal will transfer cloud gaming rights for current and new Activision Blizzard games to Ubisoft.
The UK Competition and Markets Authority (CMA) had raised concerns that Microsoft's proposed deal would give it too much power in the cloud gaming market. The CMA was concerned that Microsoft would be able to use its control of Activision Blizzard's games to stifle competition in the cloud gaming market. The transfer of cloud gaming rights to Ubisoft is designed to address these concerns. Ubisoft is a leading global game publisher with its own cloud gaming platform. By transferring the cloud gaming rights to Ubisoft, Microsoft is ensuring that Activision Blizzard games will still be available on other cloud gaming platforms.
The restructured deal has triggered a new regulatory investigation in the UK. The CMA has until October 18th to decide whether to approve the deal.
Here are some additional details about the restructured deal:
- The transfer of cloud gaming rights will be effective at the closing of the merger.
- The rights will cover all current and new Activision Blizzard PC and console games released over the next 15 years.
- The rights will be in perpetuity.
- This is a significant development in the Microsoft-Activision Blizzard saga. The transfer of cloud gaming rights to Ubisoft is a major concession by Microsoft and is likely to be enough to appease the CMA.
The restructured deal is a positive development for the cloud gaming market. It ensures that Activision Blizzard games will still be available on other cloud gaming platforms, which will help to promote competition in the market. Additionally, Microsoft has also legally committed to making Call of Duty available on rival consoles and Activision Blizzard games available on rival cloud streaming platforms.