The future of Xbox Game Pass in the UK could look a lot different

14 July 2023 , 16:00

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Xbox Cloud Gaming could be taking a hit in the UK to appease the CMA's concerns over the Activision buyout (Image: Activision)

Microsoft is apparently considering selling off cloud streaming rights in order to appease the CMA's concerns about the deal being detrimental to the growth of the cloud gaming market.

The Microsoft Activision deal has crossed almost every hurdle in front of it, with a win against the Federal Trade Comission (FTC) in US Federal Court. However, the biggest hurdle against the deal going through is the UK's Competition and Markets Authority (CMA) which blocked the deal back in April over concerns that Activision games being a part of Xbox Game Pass would make Microsoft unbeatable in the growing cloud gaming market.

Microsoft's appeal against the CMA was scheduled for July 28, 2023, but after Xbox came out on top over the FTC, the appeal was postponed with the intention of reaching an agreement outside of court. Considering that the deal has been given the go-ahead everywhere but the UK, Microsoft is apparently willing to compromise with the CMA; Bloomberg (via VGC) reports that the company is considering selling cloud gaming rights in the UK to appease the CMA.

Microsoft could be selling the cloud gaming rights to a number of titles in the UK to another company to appease the CMA's concerns that the deal could harm the growing market. In a research note to investors, Wedbush Securities analysts Nick McKay and Michael Pachter said “We believe Microsoft can carve out Game Pass UK PLC as a separate operating subsidiary with an independent board charged with keeping Activision content off the Game Pass platform pending the conclusion of Microsoft’s appeal of the CMA decision”.

While the CMA was scheduled to give its final ruling next Tuesday, July 18, the regulator has delayed its ruling until August 29, 2023 at the latest. The CMA said that it "considers that there is insufficient time remaining in the statutory period for full and proper consideration of Microsoft’s submission on the proposed Order" and that "there are special reasons to extend by six weeks".

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Head in the clouds

Truth be told, while we all have misgivings about Microsoft purchasing Activision and the potential monopolisation of the industry, it seems like a done deal at this point. So while the deal will have effects on PlayStation and Nintendo fans, now it looks like Xbox players in the UK will also come out of this with a bad deal too as they will not have access to Xbox Game Pass features that players around the world will.

So when players in the US are getting Call of Duty as a part of Xbox Game Pass cloud streaming, players in the UK will be unable to take advantage of that. There's always the chance that Microsoft's appeal could still be knocked back by the CMA, but this compromise feels like the last ditch effort for this deal going through.

Scott McCrae