The Future of Cloud Gaming: Microsoft’s ABK Deal

Microsoft sells ABK Cloud Gaming Rights to Ubisoft to restructure Activision-Blizzard deal

As part of the reorganisation that is going to take place as a result of Microsoft’s planned acquisition of Activision-Blizzard, the company made the news today that it will be selling its cloud gaming rights to Ubisoft.

The announcement was made just now by Brad Smith, who works for Microsoft, and the news was also posted on the corporate site for Microsoft. There is little room for question that this restructuring of the intended deal is an effort to satisfy the UK Competition and Markets Authority.  According to statements made by the Vice Chair and President of Microsoft, Ubisoft will get the rights to deliver cloud streaming services for all of the games that will be released by Activision Blizzard over the course of the next 15 years. These statements were made by the company. Activision Blizzard games will not be able to enjoy a monopoly on Xbox Cloud Gaming as a result of the arrangement. Instead, these games will be made accessible on a variety of other gaming platforms. According to a post that was made on a blog that was maintained by Microsoft, “Pursuant to the restructured transaction, Microsoft will not be in a position either to release Activision Blizzard games exclusively on its own cloud streaming service—Xbox Cloud Gaming—or to exclusively control the licencing terms of Activision Blizzard games for rival services.” Xbox Cloud Gaming is Microsoft’s cloud streaming service for video games.

According to something that Brad Smith said on Twitter, a revised version of the proposal has also been submitted to the CMA. On Twitter, the company’s Chief Executive Officer (CEO) said that they had “today submitted a restructured proposal to the CMA for approval of our Activision Blizzard acquisition under UK law.” The Competition and Markets Authority (CMA) has stated that it would begin a fresh phase 1 inquiry into the newly planned Microsoft/Activision-Blizzard megadeal as a response to Microsoft’s revised filing. “Today we submitted a restructured proposal to the CMA for approval of our Activision Blizzard acquisition,” According to Sarah Cardell, who serves as the Chief Executive Officer of the CMA,

In a separate but related development, Microsoft has notified the parties involved of a revised and restructured agreement. This constitutes a considerable shift from the plan that was offered earlier in the process. As part of this new arrangement, the rights to Activision’s content that can be broadcast over the internet in places that are not part of the European Economic Area (EEA) will be sold to a rival company that goes by the name of Ubisoft. After that, Ubisoft will be able to provide licencing rights to any cloud gaming service for Activision’s titles. Players will be able to get access to Activision’s games via a number of distribution methods, including cloud-based multigame subscription services, as a result of this development. From this point forward, the business transaction in question will be scrutinised as part of an all-new Phase 1 investigation. The colour of the light indicating travel in this direction is not green. We are going to carry out an investigation that is both exhaustive and objective about the particulars of the restructured agreement, as well as its impact on the degree of competition within the sector, and we are going to take into account the comments of any relevant third parties. Our goal has not changed; we want to ensure that the rapidly growing cloud gaming business continues to enjoy the advantages of free and effective competition that drives innovation and choice, regardless of what decision is made in the future concerning this new contract. Our goal has not changed because we want to ensure that the rapidly expanding cloud gaming sector continues to reap the benefits of free and effective competition that drives innovation and choice.

The fresh new Phase 1 investigation started today and will continue until October 18th, when a conclusion is expected to be reached. An interesting new wrinkle has been added to the planned merger between Microsoft and Activision-Blizzard, which has been the subject of a great deal of debate. You should anticipate hearing from us with an update as soon as we have any new information. After being reorganised in this manner, what are your thoughts on the terms of this contract? The comments area may be found further down the page.