Microsoft is restructuring the proposed Activision Blizzard deal to transfer cloud gaming rights for current and new Activision Blizzard games to Ubisoft. The transfer of rights is intended to appease UK regulators concerned about the impact of Microsoft’s proposed $68.7 billion deal on the cloud gaming race. The restructured deal will trigger a new regulatory investigation in the UK, which could last until 18 October.
“We are restructuring the deal to acquire a narrower scope of rights to address concerns about the impact on cloud gaming streaming of a takeover offer raised by the UK Competition and Markets Authority.” Microsoft president Brad Smith says. “This includes the execution of an agreement, effective upon completion of the merger, to transfer the cloud streaming rights for all Activision Blizzard PC and console games released over the next 15 years to Ubisoft Entertainment SA, one of the world’s leading game publishers. The rights are in perpetuity.”
This restructured deal means Microsoft will no longer be able to release Activision Blizzard games exclusively on Xbox Cloud Gaming if it enters into the proposed deal. Microsoft also wouldn’t be able to exclusively control the licensing terms of Activision Blizzard games on competing services.
“Ubisoft intends to compensate Microsoft for cloud streaming rights for Activision Blizzard’s games through a market-based wholesale pricing mechanism that includes one-time payments and options to support usage-based pricing,” Smith said. explains Mr. “This also gives Ubisoft the opportunity for him to bring Activision Blizzard games to cloud gaming services running non-Windows operating systems.”
Ubisoft will also add Activision Blizzard games. Ubisoft Plus Multi Access Subscriptions are available for PC, Xbox, Amazon Luna, and PlayStation via Ubisoft Plus Classics.
The UK’s Competition and Markets Authority (CMA) first blocked a deal with Microsoft in April citing concerns over cloud gaming, but after the Federal Trade Commission (FTC) lost its case in US federal court last month, Xbox I agreed to negotiate with the manufacturer. Now, the CMA has suggested it will enter a new phase of investigation thanks to Microsoft’s restructured contract, with a legal deadline set for October 18, the date Microsoft recently closed its deal with Activision. is the same as the deadline agreed upon in the extension of A person familiar with Microsoft’s plans speaks. The Verge The company currently doesn’t expect to complete the deal with Activision Blizzard until early October.
The CMA has now issued a final order banning Microsoft’s original deal worldwide while it investigates a new restructuring of the proposed acquisition by Activision Blizzard.of CMA Note “If Ubisoft decides to use or license out cloud streaming rights for Activision titles on its cloud gaming service, it will charge Microsoft to adapt Activision titles to non-Windows operating systems such as Linux, for a fee. You can also “anything running an operating system other than Windows.” ”
However, the restructured deal does not affect Microsoft’s obligations to the European Commission. Microsoft has closed several cloud gaming deals, and EU regulators have approved his Activision Blizzard deal. Thanks to that, consumers in EU countries will be able to stream via all current and future Activision Blizzard PCs and “any cloud game streaming service.” Console games they have licenses for.
“The contract with Ubisoft is Microsoft’s legal obligation under its commitment to the European Commission, as well as Nvidia, Boosteroid, Ubitus and Nware,” Smith said.
The CMA will evaluate the revised agreement over the next few weeks and will make a decision by the Oct. 18 deadline. “This is not a green light. We will carefully and objectively assess the details of the restructured transaction and its impact on competition, including third-party comments,” said CMA’s chief executive. Director Sarah Cardell said. “Our goals have not changed. Future decisions on this new agreement will ensure that the growing cloud gaming market continues to benefit from open and effective competition that drives innovation and choice.”