Recently, Microsoft announced that it was acquiring Activision Blizzard in a move that is set to shake up the gaming industry. The deal, which is worth $68.7 billion, will make Microsoft the fourth-largest company in the industry, with Activision’s popular titles such as Call of Duty and Candy Crush joining its already impressive portfolio. However, as the tech giant’s attention turns to integrating its newest acquisition, it seems that Microsoft’s European Union (EU) remedies focus on cloud streaming rivals, rather than the gaming industry itself. In this article, we’ll explore what this means for the future of cloud gaming and the potential impacts of Microsoft’s EU remedies.
According to insiders, Microsoft’s proposed remedies to address European Union antitrust concerns over their $69 billion acquisition of Activision only focus on cloud gaming services and do not mention competition with rival Sony. Microsoft submitted this proposal to the European Commission last week, but did not disclose any details. However, sources say that examples given include licensing deals for cloud gaming services with companies like Nvidia, Boosteroid, and Ubitus for ten years. The EU competition enforcer has given until the end of this week for rivals and customers to provide feedback before deciding on the deal by May 22nd. Although some individuals with direct knowledge of the matter anticipate that the licensing deals will be accepted, it remains unclear whether the UK watchdog will accept such so-called behavioural remedies. Last month, Microsoft struck a 10-year deal to bring Activision games to Nvidia’s gaming platform if the Xbox maker completes its acquisition of Activision.
In conclusion, the Microsoft-Activision deal has caused quite a stir in the gaming industry. While the gaming community is eagerly looking forward to the outcome of this acquisition, the regulatory bodies are keeping a watchful eye on the proceedings. The recently announced EU remedies have raised concerns among rival gaming companies, especially those offering cloud streaming services. It remains to be seen how this deal plays out in the coming months and whether Microsoft’s proposed remedies will indeed address the competition concerns identified by the regulatory authorities. Regardless, it is clear that this deal is a game-changer for Microsoft and could potentially redefine the world of gaming as we know it.
