Microsoft signs 10 year deal with Spanish cloud gaming platform 'Nware'
Following a major setback from the UK's Competition and Markets Authority (CMA), Microsoft signed a 10 year deal with the Spanish cloud gaming platform 'Nware'.
Soon after facing a major setback by UK's regulatory body in the Activision acquisition deal, Microsoft announced a 10-year agreement with the Spanish cloud gaming company "Nware". This is Microsoft's fifth agreement done in order to approve the biggest pending deal in the gaming sector. The Microsoft-Nware deal will help the gamers to stream PC games built by Xbox games on its platform as well as Activision Blizzard titles after the acquisition completes. Microsoft president Brad Smith took to the twitter to announce the latest partnership with cloud gaming platform.
"While it's still early for the emerging cloud segment in gaming, this new partnership combined with our other recent commitments will make more popular games available on more cloud game streaming Services than they are today", said Brad Smith
Microsoft and European cloud gaming platform Nware have signed a 10-year agreement. Our statement here: pic.twitter.com/GWoSBg63P6
— Brad Smith (@BradSmi) April 28, 2023
Microsoft has been actively signing agreements with multiple cloud gaming companies across the globe. Before the Nware deal, Microsoft signed 10 year deals with Nvidia, Nintendo, Boosteroid, and Ubitus with a view to assure the regulatory bodies about its acquisition of Activision Blizzard.
The announcement of the Microsoft-Nware deal came right after UK's Competition and Markets Authority (CMA) blocked the $69 billion deal of the Activision Blizzard acquisition. The CMA stated that the deal would alter the future of cloud gaming market and reduce choices for UK gamers in the future. The regulatory body also mentioned that Microsoft already dominates the 60-70% of global cloud gaming services. If this deal happens, it would enable Microsoft to take full control over the gaming content in Call of Duty, Overwatch and World of Warcraft. In December 2022, US's FTC filed a lawsuit on Microsoft on the similar grounds claiming that the software giant has misused its previous acquisitions to overpower the competitors in the market.
Mircosoft was quick to react to the UK's CMA decision of blocking the acquisition of Activision Blizzard. The company said that it would appeal the decision taken by the regulatory body. Microsoft's president Brad Smith said that the company remains committed to this acquisition. He further mentioned that the decision discourages technology innovation and investment in the United Kingdom.
Activision Blizzard also reacted the CMA's decision of blocking the acquisition, the company stated that the decision contradicts the ambitions of the UK to become an attractive country to build technology businesses. The statement further mentioned that the company would work aggressively with Microsoft to appeal the decision.