Eyeing UK approval, Microsoft sells Activision cloud rights to Ubisoft
US tech giant Microsoft is reworking its $68.7 billion Activision Blizzard acquisition to address UK regulators' concerns about competition in the cloud gaming market. The firm will transfer cloud gaming rights for present and future Activision Blizzard titles to Ubisoft. This will prevent Microsoft from releasing these games solely on Xbox Cloud Gaming or controlling the licensing terms on rival platforms.
Here's a look at the announcement
Ubisoft will offer a one-time payment to Microsoft
As part of the revised agreement, Ubisoft will compensate Microsoft through a one-time payment and a market-based wholesale pricing mechanism, with options for usage-based pricing. This arrangement will allow Ubisoft to offer Activision Blizzard games on non-Windows cloud gaming services, in order to foster a more competitive landscape.
CMA launches new investigation, sets deadline
The UK's Competition and Markets Authority (CMA) has launched a new investigation phase with a deadline set for October 18. This imposes a final order that blocks Microsoft's original deal worldwide during the inquiry. The American tech giant now hopes to finish the acquisition of Activision Blizzard in early October.
European commitments unchanged, multiple deals secured
Microsoft's commitments to the European Commission remain unchanged. The company has secured several cloud gaming deals ensuring consumers can stream Activision Blizzard games via any service of their choice. The agreement with Ubisoft enables Microsoft to fulfill its legal obligations to the European Commission and its contractual obligations to other cloud game streaming providers, including NVIDIA, Boosteroid, Ubitus, and Nware.
