Microsoft’s Acquisition of Activision Options Move Forward, Ubisoft to Assume Cloud Rights
Microsoft has taken significant steps towards its acquisition of Activision Blizzard, with the Competition and Markets Authority (CMA) showing support for the deal. The tech giant initially proposed the acquisition back in January 2022, but it has faced regulatory challenges in multiple regions. However, Microsoft has now unveiled a renewed proposal that includes a range of concessions aimed at addressing the concerns raised by regulators.
Under the updated agreement, Microsoft will not acquire cloud rights for ongoing and upcoming PC and console games from Activision. Instead, those rights will be transferred to French game publisher Ubisoft Entertainment. The CMA has specified that this transfer must happen before Microsoft completes the acquisition of Activision. In return, Ubisoft will compensate Microsoft for the cloud streaming rights through a one-off payment and a market-based wholesale pricing mechanism.
According to Brad Smith, the President of Microsoft, Ubisoft will also have the opportunity to offer Activision Blizzard’s games to cloud gaming services running non-Windows operating systems. This indicates that Ubisoft will not only gain access to popular game titles but also expand its reach to a wider audience across different platforms.
Moreover, Ubisoft plans to incorporate Activision Blizzard games into its Ubisoft Plus Multi Access subscription, which is available on various platforms such as PC, Xbox, Amazon Luna, and PlayStation via Ubisoft Plus Classics. This move is expected to enhance the value proposition of Ubisoft’s subscription service and provide gamers with a more diverse selection of games to enjoy.
The CMA now has the task of reviewing and assessing the revised agreement between Microsoft and Activision. The verdict is expected to be delivered by October 18, and Microsoft hopes that the assessment can be completed before this deadline. The outcome of this review will determine whether the acquisition can proceed as planned or if further modifications will be required.
Overall, this latest development indicates that Microsoft is making progress in addressing the regulatory concerns surrounding its acquisition of Activision Blizzard. The decision to transfer cloud rights to Ubisoft demonstrates a willingness to cooperate and find a solution that balances competition and innovation in the gaming industry. If approved, this acquisition has the potential to shape the future of gaming and cloud gaming services, benefiting both Microsoft and Ubisoft.
