Microsoft Takes a Shocking Route to Get Approval for Its $68.7 Billion Activision Deal in the UK

One of the biggest talking points in the gaming industry over the last year is Microsoft’s acquisition of Activision-Blizzard. The deal faced strong opposition from the regulating body in the UK. However, it looks like Microsoft may have found a way around.

In a shocking turn of events, Microsoft announced it will sell its Activision Blizzard cloud-gaming rights to Ubisoft if the deal goes through. This was done primarily to settle concerns of anti-competitive practices that would see Activision titles retained as Xbox exclusives.

Microsoft joins hands with Ubisoft

The Microsoft-Activision deal saw a lot of concerns from regulating bodies relating to console exclusivity. As a result, in a lot of its proceedings with different regulating bodies worldwide, Microsoft tried to show it did not want to keep the titles as exclusives. With the deal drawing a lot of attention from the UK Competition and Markets Authority, they are now looking at a new route.

Microsoft and Ubisoft will join hands, effectively selling them rights to Activision-Blizzard games for cloud gaming. This agreement will take place for 15 years if Microsoft acquires Activision in its $68.7 billion deal.

The idea is to show Microsoft does not aim to keep these titles for themselves as exclusives. Offering titles through Ubisoft effectively makes it a middleman when it comes to offering these titles on rival consoles. Moreover, with cloud gaming becoming crucial for gamers, selling their cloud streaming rights is a big move for Microsoft. It understands with the arrival of Project Cronos for PlayStation, cloud gaming will be an equally important front. As a result, it can go a long way in addressing the concerns the CMA presented.

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Brad Smith, Microsoft’s President and Vice Chair, spoke about Microsoft’s hopes of getting the deal done before the 90-day extension for the acquisition. He said, “As such, Microsoft 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.”

What does this mean for cloud gaming?

Gamers could not contain their excitement when they heard the news. The last few months saw a lot of conversation about titles such as Call of Duty skipping release on PlayStation. However, the deal spells positive news for cloud gaming, given that Microsoft will not exclusively release these titles only on their service.

It’s a big win for the fans. They often find themselves divided by their consoles. However, with titles that come on both consoles, these barriers fall down, uniting gamers. This certainly looks like a big step for gaming.

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