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Microsoft's proposed $69 billion takeover of Activision Blizzard got the "go ahead" from the vast majority of regulatory bodies around the world, but the UK's Competition and Markets Authority (CMA) ultimately chucked a spanner into the works—consequently the deal's signing off date was delayed into the autumn. The top brass at Microsoft and Acti-Blizz have worked on a revised set of terms (to address concerns raised earlier this year), and the outcome has been semi-positive. The competition watchdog appears to be satisfied, prior to making a concrete announcement: "While the CMA has identified limited residual concerns with the new deal, Microsoft has put forward remedies which the CMA has provisionally concluded should address these issues. The CMA is now consulting on the remedies before making a final decision."
Under the newly redrafted deal—submitted for approval last month—Microsoft has agreed to transfer the rights to stream Activision games from the cloud to French video games publisher—Ubisoft—for a 15 year long term. The CMA's freshly published press release provides an insight into future infrastructures: "Under that new deal, Microsoft will not purchase the cloud gaming rights held by Activision, which will instead be sold to an independent third party, Ubisoft Entertainment SA (Ubisoft), before the deal is completed. The prior sale of the cloud gaming rights will establish Ubisoft as a key supplier of content to cloud gaming services, replicating the role that Activision would have played in the market as an independent player."
The statement elaborated on the adjusted direction: "In contrast to the original deal, Microsoft will no longer control cloud gaming rights for Activision's content, so would not be in a position to limit access to Activision's key content to its own cloud gaming service or to withhold those games from rivals. Unlike the remedies the CMA previously rejected, Ubisoft will be free to offer Activision's games both directly to consumers and to all cloud gaming service providers however it chooses, including for buy-to-play or multi-game subscription services, or any new model for providing content that might emerge as the market develops. The deal with Ubisoft also requires Microsoft to port Activision games to operating systems other than Windows and support game emulators when requested, addressing the other main shortcoming with the previous remedies package."
The CMA's chief executive, Sarah Cardell, released a statement to news media: "(Our) position has been consistent throughout - this merger could only go ahead if competition, innovation, and choice in cloud gaming was preserved."
Eurogamer reports that Brad Smith, Microsoft's vice chair and president, said that his firm was "encouraged" by today's development: "We presented solutions that we believe fully address the CMA's remaining concerns related to cloud game streaming, and we will continue to work toward earning approval to close prior to the 18th October deadline."
View at TechPowerUp Main Site | Source
Under the newly redrafted deal—submitted for approval last month—Microsoft has agreed to transfer the rights to stream Activision games from the cloud to French video games publisher—Ubisoft—for a 15 year long term. The CMA's freshly published press release provides an insight into future infrastructures: "Under that new deal, Microsoft will not purchase the cloud gaming rights held by Activision, which will instead be sold to an independent third party, Ubisoft Entertainment SA (Ubisoft), before the deal is completed. The prior sale of the cloud gaming rights will establish Ubisoft as a key supplier of content to cloud gaming services, replicating the role that Activision would have played in the market as an independent player."
The statement elaborated on the adjusted direction: "In contrast to the original deal, Microsoft will no longer control cloud gaming rights for Activision's content, so would not be in a position to limit access to Activision's key content to its own cloud gaming service or to withhold those games from rivals. Unlike the remedies the CMA previously rejected, Ubisoft will be free to offer Activision's games both directly to consumers and to all cloud gaming service providers however it chooses, including for buy-to-play or multi-game subscription services, or any new model for providing content that might emerge as the market develops. The deal with Ubisoft also requires Microsoft to port Activision games to operating systems other than Windows and support game emulators when requested, addressing the other main shortcoming with the previous remedies package."
The CMA's chief executive, Sarah Cardell, released a statement to news media: "(Our) position has been consistent throughout - this merger could only go ahead if competition, innovation, and choice in cloud gaming was preserved."
Eurogamer reports that Brad Smith, Microsoft's vice chair and president, said that his firm was "encouraged" by today's development: "We presented solutions that we believe fully address the CMA's remaining concerns related to cloud game streaming, and we will continue to work toward earning approval to close prior to the 18th October deadline."
View at TechPowerUp Main Site | Source
