The intention is to secure UK approval for their multibillion-dollar acquisition.
Microsoft is altering its planned Activision Blizzard agreement to shift cloud gaming privileges for both existing and upcoming Activision Blizzard titles to Ubisoft. This adjustment aims to address apprehensions from UK regulators regarding the potential impacts of Microsoft’s $68.7 billion proposal on cloud gaming competitiveness.
This revised arrangement has prompted a fresh regulatory inquiry in the UK, possibly extending until the 18th of October.
Yesterday, Microsoft’s President Brad Smith revealed that in the event of acquiring Activision Blizzard, the company will commit to selling streaming rights for all games under Activision Blizzard.
Smith stated:
“Under the restructured transaction, Microsoft will not be in a position either to release Activision Blizzard games exclusively on its own cloud streaming service—Xbox Cloud Gaming – or to exclusively control the licensing terms of Activision Blizzard games for rival services.”
In addition, he stated:
“To address the concerns about the impact of the proposed acquisition on cloud game streaming raised by the UK Competition and Markets Authority, we are restructuring the transaction to acquire a narrower set of rights. This includes executing an agreement effective at the closing of our merger that transfers the cloud streaming rights for all current and new Activision Blizzard PC and console games released over the next 15 years to Ubisoft Entertainment SA, a leading global game publisher. The rights will be in perpetuity.”
This updated deal prevents Microsoft from releasing Activision Blizzard games as exclusive offerings only on Xbox Cloud Gaming, should the company’s planned merger go through. Additionally, Microsoft’s ability to impose licensing terms for Activision Blizzard games on rival platforms will be restricted.
Instead, Ubisoft will take control of the rights to stream Activision Blizzard games outside of the EU, and will then give Microsoft the go-ahead to integrate these games through licensing into Xbox Cloud Gaming.
Activision Blizzard games will also be integrated into Ubisoft’s Multi-Access subscription, known as Ubisoft Plus, accessible on PC, Xbox, Amazon Luna, and even on PlayStation through Ubisoft Plus Classics.
Initially scheduled for completion by mid-July, Microsoft’s acquisition of Activision Blizzard encountered numerous obstacles in both the United States and the United Kingdom.
We’ve been tracking this narrative from its inception if you’re interested in catching up on the complete story and its origins.
This recent action is just among several undertaken by Microsoft to secure the Activision Blizzard acquisition, and it’s probable that more such measures will follow.