Microsoft to Sell Cloud Streaming Rights of Activision Blizzard Games to Ubisoft
The UK‘s CMA today announced that a new investigation has been triggered after Microsoft submitted a revised version of its proposed $68.7 billion acquisition of Activision Blizzard. Microsoft submitted a restructured deal to address concerns about a cloud gaming monopoly raised by the CMA in their final report on this merger in April 2023.
In April, the CMA blocked this deal due to concerns that Microsoft could create a cloud gaming monopoly after acquiring Activision Blizzard. According to the authority, this deal one completion would make Xbox Game Pass and Xbox Cloud Gaming more dominant than their competitors, as they’d exclusively include games from Activision.
Today, the CMA also imposed a Final Order that prohibits the original deal globally, leaving no room for approval from the CMA. However, since Microsoft has now submitted a new proposal with restructured conditions to satisfy the UK Competition and Markets Authority, the CMA has agreed to investigate the newly proposed deal once again.
This restructured deal is accepted by the CMA, and the investigation will follow the usual procedure, with the condition that Microsoft won’t exclusively gain cloud streaming rights to the current and upcoming slate of Activision Blizzard games on all platforms. Instead, a third party, Ubisoft, will possess these streaming rights for all the current games on its platform, Ubisoft+ (Ubisoft Plus).
Under the restructured deal, Microsoft will not acquire cloud rights for existing Activision PC and console games, or for new games released by Activision during the next 15 years (this excludes the European Economic Area). Instead, these rights will be divested to Ubisoft Entertainment SA (Ubisoft) prior to Microsoft’s acquisition of Activision.
CMA
In addition to the currently released games, Ubisoft will also acquire rights to stream Activision Blizzard games on its cloud gaming service for the next 15 years after Microsoft acquires Activision Blizzard. The deal has been restructured to ensure Microsoft doesn’t exclusively stream all Activision games, including popular titles like Call of Duty, on its services.
Furthermore, Ubisoft will have the option to license the Activision game streaming rights to other cloud gaming services and subscriptions as well. This aims to provide consumers with more options.
We’re excited to announce a new agreement that will bring Activision Blizzard games to Ubisoft+ via streaming upon the completion of Microsoft’s acquisition of Activision Blizzard!
We’ll also be licensing the games to a range of cloud streaming and subscription services.
Ubisoft
Microsoft’s Statement On The Restructured Deal
Microsoft believes that the revised deal is more favorable for the consumers and will help them mitigate the previously raised concerns by the CMA.
We believe that this development is positive for players, the progression of the cloud game streaming market, and for the growth of our industry. And as we continue to navigate the review process with the CMA, we remain as committed as ever to bringing the incredible benefits of the acquisition to players, developers, and the industry. Today’s development brings us one step closer to bringing the joy of gaming to players everywhere.
Microsoft
What are your thoughts on this news? Do you believe that these restructuring conditions will bolster Microsoft’s position and address the CMA’s concerns regarding this deal? Let’s discuss this in the comments section below.
