Microsoft revises Activision Blizzard acquisition, transfers Cloud Gaming rights to Ubisoft amid UK regulatory scrutiny

Microsoft announced that it is modifying its $68.7 billion acquisition of Activision Blizzard, shifting Xbox Cloud Gaming rights for current and future games to Ubisoft to address UK regulators' concerns about cloud gaming competition. This change has sparked a new regulatory investigation in the UK, expected to wrap up by October 18th. Let's remember that the latest developments in this endless saga have been Microsoft's victory against a preliminary trial with the FTC, and the subsequent announcement by the CMA to carry out a new review of the case after having announced the acquisition's blockage in April of this year.

Microsoft's president, Brad Smith, has stated that the updated deal will give Ubisoft perpetual control over the cloud streaming rights for all existing and new Activision Blizzard PC and console games outside of the EU (such as World of Warcraft, Overwatch, Diablo, and of course, Call of Duty). As part of this deal, Ubisoft will make a one-time payment to Microsoft and use market-based wholesale pricing.

The compensation package from Ubisoft includes a usage-based pricing option and the ability to offer Activision Blizzard games on non-Windows cloud gaming services. Activision Blizzard games will also be added to Ubisoft's Ubisoft Plus Multi Access subscription on various platforms. The UK's Competition and Markets Authority (CMA) is examining the impact of this revised deal on competition after initially halting the deal. The outcome is expected by October 18th.