22 August 2023 , 10:00
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Microsoft has announced that the company will transfer the cloud gaming rights for Activision Blizzard titles to Ubisoft in an attempt to appease the UK's Competition and Markets Authority (CMA).
The CMA blocked the Microsoft Activision deal back in April 2023 due to concerns over the growth of cloud gaming, and has since become the main hurdle for Microsoft's buyout of Activision Blizzard. Rumours began to swirl last month that Xbox was considering selling off the cloud gaming rights to Activision Blizzard titles, and despite a change in circumstances appeal filed by Microsoft, that rumour turned out to be on the money.
Microsoft President Brad Smith posted to the Microsoft website announcing that upon closing the Microsoft Activision deal, the cloud streaming rights for past and future Activision Blizzard titles will be transferred to Ubisoft for the next 15 years. What this means is that Ubisoft will be in charge of the rights for these titles across all streaming services and are able to license them out at will.
This comes after the CMA confirmed that the original deal was blocked following the change in circumstances appeal, and that now the brand new deal featuring Ubisoft is under investigation. Sarah Cardell, Chief Executive of the CMA said "This is not a green light. We will carefully and objectively assess the details of the restructured deal and its impact on competition, including in light of third-party comments. Our goal has not changed – any future decision on this new deal will ensure that the growing cloud gaming market continues to benefit from open and effective competition driving innovation and choice".
The Microsoft press release continues to say "Microsoft today has notified the restructured transaction to the CMA and anticipates that the CMA review processes can be completed before the 90-day extension in its acquisition agreement with Activision Blizzard expires on October 18".
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However, despite the rights being under Ubisoft's belt, Microsoft's previous agreements with cloud gaming providers like Nvidia, Boosteroid, Ubitus, and Nware will still be honoured. And of course, the deals to continue bringing Call of Duty to PlayStation and Nintendo consoles for 10 years are unaffected by this news.
Always a plus
This also means that Xbox Game Pass subscribers will be able to have access to Xbox Cloud Streaming versions of these titles should Ubisoft license them to the platform. Ubisoft games tend to launch on Amazon Luna so I would expect that to be one of the services in the cards.
In conjunction with this news, Ubisoft also announced that a number of Activision Blizzard games will come to the Ubisoft+ subscription once the deal goes through. Meaning if you have a Ubisoft+ Multi Access subscription on PC, Xbox, and Amazon Luna, or access to Ubisoft+ Classics (which is included in PS Plus) on PlayStation consoles you'll be getting Activision Blizzard titles included in that subscription.
Even before this, it felt like the CMA's argument was running out of steam and that the Microsoft Activision Deal going through felt like an inevitability. Now I'd be extremely shocked if the CMA blocked it once again, considering the regulators' argument was solely about the growth of the cloud streaming market.