Microsoft is planning on Selling Activision Blizzard Cloud Gaming Rights to Ubisoft

Microsoft has announced that it will sell the cloud gaming rights for all current and future Activision Blizzard PC games for 15 years to Ubisoft. 

This is in response to concerns raised by the UK Competition and Markets Authority (CMA) that the acquisition of Activision Blizzard by Microsoft would give the company too much control over the cloud gaming market.

The agreement to sell the cloud gaming rights to Ubisoft is an attempt by Microsoft to address the concerns of the CMA. By selling the rights to Ubisoft, Microsoft will be giving up some of its control over the cloud gaming market.

This could help to ensure that there is still competition in the market, even after the acquisition of Activision Blizzard is completed.

Key takeaways from the article

• Microsoft has agreed to sell the cloud gaming rights for all current and future Activision Blizzard PC games for 15 years to Ubisoft.
• The agreement is an attempt by Microsoft to address the concerns of the CMA about the impact of the acquisition on cloud game streaming.
• The deal is still subject to regulatory approval.
• The deal is a major win for Ubisoft, which has been looking to expand its cloud gaming business.
• The deal is also a sign of the growing importance of cloud gaming.

CMA’s concern

The CMA is concerned that the acquisition of Activision Blizzard by Microsoft would give the company a dominant position in the cloud gaming market. This is because Microsoft already owns Xbox Cloud Gaming, one of the leading cloud gaming services.

It is worried that Microsoft could use its control over Activision Blizzard to prevent other cloud gaming services from being successful.

The agreement is still subject to regulatory approval, but it is a significant step by Microsoft, and it shows that the company is willing to make concessions to acquire Activision Blizzard.

About the agreement

The agreement covers all current and future Activision Blizzard PC games, but not console games. This is because the CMA is only concerned about the impact of the acquisition on the cloud gaming market for PC games.

It is for 15 years. This is a long time, but it is necessary to give Ubisoft enough time to build a successful cloud gaming business. It is still subject to regulatory approval. The CMA is still reviewing the deal, and it is possible that they could impose additional conditions on the agreement.

It is also worth noting that Microsoft is not the only company that has made concessions in order to acquire a gaming company. In 2020, Sony agreed to sell its cloud gaming service, PlayStation Now, to Microsoft in order to get regulatory approval for its acquisition of ZeniMax Media.

The cloud gaming market is still in its early stages, and it is not yet clear who the major players will be. The agreement between Microsoft and Ubisoft is a sign that the two companies are taking the cloud gaming market seriously, and we may see more deals like this in the future.

Possible implications of this agreement

This agreement could give Ubisoft a boost in the cloud gaming market. Ubisoft is a major game publisher, and it has a strong portfolio of PC games. 

This agreement will give Ubisoft access to a new distribution channel for its games, and it could help the company to compete with other cloud gaming services.

It could reduce competition in the cloud gaming market. Microsoft is a major player in the cloud computing market, and it has the resources to build its cloud gaming infrastructure. 

However, by selling the cloud gaming rights to Ubisoft, Microsoft is effectively giving up on this market. This could reduce competition in the cloud gaming market, and it could make it more difficult for new players to enter the market.

It could lead to higher prices for cloud gaming services. If Microsoft and Ubisoft are the only major players in the cloud gaming market, they could raise prices for their services. 

This could make it more difficult for consumers to access cloud gaming, and it could stifle innovation in the market.

Ubisoft’s Perspective

The deal is a major win for Ubisoft, which has been looking to expand its cloud gaming business. The company now has access to a library of popular Activision Blizzard games, which will help to attract new subscribers to its cloud gaming service, Luna.

The deal is also a sign of the growing importance of cloud gaming. The market is still in its early stages, but it is expected to grow rapidly in the coming years. 

The deal between Microsoft and Ubisoft is a major coup for the cloud gaming industry, and it could help to accelerate the growth of the market.

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