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Friday, May 17, 2024

Microsoft sells streaming rights to Ubisoft of all people – and there’s calculation behind it

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If the big deal goes through and Microsoft is allowed to buy Activision, then streaming rights for Call of Duty and Co. will go to Ubisoft. What’s the point behind that?

It now looks like the historic Microsoft deal to buy out Activision Blizzard will actually go through. But apparently Microsoft still has to wring a few concessions from the British competition authority CMA, which has not yet given its approval. We explain what Ubisoft, of all companies, has to do with it

Streaming should not be exclusive to Microsoft

As Ubisoft (via blog post) announces, Activision Blizzard’s games (i.e. Call of Duty, for example) are to be available via the streaming service Ubisoft+ in the future. This deal is to be valid for 15 years and includes both Activision’s current and future titles. Ubisoft may also license these games to other streaming companies. 

What this means specifically is that you can then choose which service you get access to the games through, rather than being forced to stream directly with Microsoft. Why is Microsoft doing this?

This would mean that the streaming rights for the games in question would no longer be exclusive to Xbox Cloud Games – and it’s probably exactly what Microsoft is hoping that it will do to calm the CMA down a bit, because it could weaken the feared dominance in the gaming market somewhat.

What does the CMA say? The competition authority has reiterated that it will not approve the original Microsoft deal. They have now received an amended application in which some of the proposals are different – for example the streaming story mentioned above. They will now reconsider, with a deadline of 18 October 2023.

When could the games end up at Ubisoft+? Autumn 2023 at the earliest, if the CMA does now approve the deal. Ubisoft itself does not give a time frame yet, but promises an update as soon as a date can be announced.

The planned billion-dollar Microsoft-Activision deal is not through yet, even though many authorities have already agreed. If the CMA changes its mind and gives the go-ahead after all, there’s not too much standing in the way of the purchase. So it will remain exciting until (at least) October this year!

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