Microsoft announces plans to sell cloud gaming rights to its titles to rival Ubisoft in order to acquire Activision Blizzard



Microsoft has announced the acquisition of Activision Blizzard in 2022. In response, antitrust authorities around the world have investigated, but Japanese and EU regulators have approved the acquisition, and complaints by US regulators have also been rejected. Meanwhile, the UK regulatory body, the Competition and Markets Authority (CMA), is continuing its investigation, but in order to obtain acquisition approval from the CMA, Microsoft has acquired cloud gaming rights for its own titles from one of its rival companies. announced that it will be sold to Ubisoft.

Microsoft and Activision Blizzard restructure proposed acquisition and notify restructured transaction to the UK's Competition and Markets Authority - Microsoft On the Issues
https://blogs.microsoft.com/on-the-issues/2023/08/21/microsoft-activision-restructure-acquisition/

Microsoft submits new deal for review after CMA confirms original deal is blocked - GOV.UK
https://www.gov.uk/government/news/microsoft-submits-new-deal-for-review-after-cma-confirms-original-deal-is-blocked

Microsoft to sell off Activision cloud gaming rights to Ubisoft in bid for UK approval - The Verge
https://www.theverge.com/2023/8/22/23828302/microsoft-activision-blizzard-acquisition-ubisoft-cloud-gaming-rights-uk-cma



The CMA, which continues to investigate Microsoft's acquisition of Activision Blizzard, is concerned that the acquisition could have a significant impact on competition in the cloud gaming market. Microsoft has announced that it has restructured its acquisition of Activision Blizzard to address this concern.

The restructured acquisition agreement includes that ``Microsoft will transfer the cloud gaming rights of the company's upcoming Activision Blizzard titles to Ubisoft, the world's leading game publisher, for the next 15 years.''

As a result, even if Microsoft's acquisition of Activision Blizzard is completed, it will be impossible to release Activision Blizzard titles only with Microsoft's cloud gaming service, Xbox Cloud Gaming. Additionally, Microsoft will no longer have exclusive control over the licensing terms of Activision Blizzard titles on competing services, instead Ubisoft will control the cloud gaming rights for Activision Blizzard titles outside the EU. Therefore, it seems that Activision Blizzard titles included in Xbox Cloud Gaming will be licensed by Ubisoft to Microsoft.

Microsoft expects that the restructuring of the acquisition agreement will clear the CMA's concerns and obtain approval for the acquisition.

In response, Ubisoft said, ``Once Microsoft's acquisition of Activision Blizzard is completed, we are pleased to announce a new agreement that will allow Activision Blizzard titles to be provided to Ubisoft+ via streaming. Various cloud gaming services. We plan to license the game to and subscription services,' said Microsoft and Ubisoft's new agreement allows various cloud gaming services and subscription services to offer Activision Blizzard titles by signing a license agreement with Ubisoft. I made it clear that it would be.




According to Microsoft, the deal gives Ubisoft a unique opportunity to commercialize the distribution of games via cloud streaming. Ubisoft can innovate and encourage a variety of business models for licensing and pricing Activision Blizzard titles on cloud streaming services around the world. Ubisoft will pay Microsoft for cloud streaming rights to Activision Blizzard titles through market-based pricing mechanisms, including 'one-time payments' and 'use-based pricing.' . Additionally, Ubisoft will also have the opportunity to bring Activision Blizzard titles to its cloud gaming service for devices with non-Windows operating systems.

The CMA has announced that it will begin an investigation into Microsoft's restructured Activision Blizzard acquisition agreement, and has issued an order to ban Microsoft's acquisition transactions worldwide until this investigation is completed.

Regarding the new Activision Blizzard acquisition deal, the CMA said, 'Microsoft has informed us of a new, restructured deal that is significantly different from what was previously proposed. The cloud-streaming rights to Activision Blizzard titles will be sold to rival Ubisoft, allowing the company to license Activision Blizzard content to any cloud gaming provider, giving gamers access to cloud-based gaming subscription services and more. Activision Blizzard games will be accessible in a variety of ways.'

However, it is said that this does not mean that the acquisition has been approved, and the CMA plans to carefully and objectively evaluate the contents of the restructured acquisition agreement and the impact on the market, taking into account the opinions of third parties. It is.'

The CMA has set an investigation deadline for Microsoft's acquisition agreement on October 18, 2023, which is also the deadline for Microsoft's Activision Blizzard acquisition agreement. Phil Spencer, chief executive of Xbox, Microsoft's gaming arm, expects the CMA review process to be completed by Oct. 18, citing Sarah Bond's 'outstanding leadership' in regulated trading. praised the

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in Web Service,   Game, Posted by logu_ii