Microsoft Will Sell Activision Cloud Gaming Rights to Ubisoft

Microsoft is restructuring its proposed Activision Blizzard deal to transfer cloud gaming rights for current and new Activision Blizzard games to Ubisoft. The companies are taking this decision to appease regulators in the UK that are concerned about the impact Microsoft’s proposed $68.7 billion deal will have on cloud gaming competition. The restructured deal has triggered a new regulatory investigation in the UK that could last until October 18th.

Microsoft Will Sell Activision Cloud Gaming Rights to Ubisoft

“To address the concerns about the impact of the proposed acquisition on cloud game streaming raised by the UK Competition and Markets Authority, we are restructuring the transaction to acquire a narrower set of rights,” says Microsoft president Brad Smith. “This includes executing an agreement effective at the closing of our merger that transfers the cloud streaming rights for all current and new Activision Blizzard PC and console games released over the next 15 years to Ubisoft Entertainment SA, a leading global game publisher. The rights will be in perpetuity.”

This restructured deal means that if Microsoft does close its proposed acquisition then it will not be able to release Activision Blizzard games exclusively on Xbox Cloud Gaming. Microsoft won’t be able to exclusively control the licensing terms of Activision Blizzard games on rival services either. Instead, Ubisoft will control the streaming rights to Activision Blizzard games outside of the EU. It will license titles back to Microsoft to be included in Xbox Cloud Gaming.

“Ubisoft will compensate Microsoft for the cloud streaming rights to Activision Blizzard’s games through a one-off payment and through a market-based wholesale pricing mechanism, including an option that supports pricing based on usage,” explains Smith. “It will also give Ubisoft the opportunity to offer Activision Blizzard’s games to cloud gaming services running non-Windows operating systems.”

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Source: Verge