Microsoft Corp. has signed a 10-year contract to bring Call of Duty and other Activision games to Nvidia Corp.’s gaming platform if its $69 billion acquisition of Activision is approved.
Authorities and rivals such as Sony have vehemently opposed the proposed Microsoft–Activision merger.
Microsoft Urges To Bring Call of Duty Games To Nintendo Platforms
Regulators throughout the world have expressed skepticism about the purchase, despite the fact that the move may assuage concerns by expanding users’ access to Microsoft-owned games.
The United Kingdom warned earlier this month that the agreement could affect gamers by diminishing the competitiveness between Xbox and PlayStation, leading to increased costs, fewer options, and less innovation for millions of users, as well as restricting competition in cloud gaming.
After the Nvidia contract and a similar agreement with Nintendo Co Ltd., Microsoft President Brad Smith stated at a news conference on Tuesday that he is now more optimistic about completing the Activision acquisition.
Phil Eisler, vice president and general manager of Nvidia’s GeForce Now segment, stated that titles like Call of Duty will not be available on Nvidia’s service unless Microsoft acquires Activision, but that other Microsoft-owned titles like Minecraft are immediately covered under the 10-year license agreement.
Eisler stated that Microsoft’s acquisition of Activision initially raised some concerns. Afterward, we reached out to Microsoft, who was eager to collaborate with us on a 10-year license arrangement and enable cloud gaming. Consequently, they gradually acclimatized us to it over time.
Eisler stated that Nvidia does not pay Microsoft for access to the titles, which is the same agreement the business has with other gaming companies, such as the developer of Fortnite, and Epic Games. Instead, the 25 million customers of Nvidia will be required to pay Nvidia for access to its cloud gaming platform and Microsoft for its games.
On Tuesday afternoon, Microsoft shares declined 2%, Nvidia shares slid 3.4%, and Activision shares lost 0.7% in a generally declining market.
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Nvidia Supports Microsoft’s Purchase
The transaction may still be difficult to pitch to authorities. Earlier this month, European officials issued a warning to Microsoft on the deal, while the U.S. Federal Trade Commission has urged a judge to prohibit it.
The British competition watchdog has suggested that Microsoft may be required to sell Call of Duty. Smith expressed his hope that Sony Group Corp. will contemplate a similar partnership with Nvidia.
Sony has been at the forefront of resistance to the Microsoft-Activision merger, declaring last year that it was terrible for competition, bad for the gaming industry, and awful for gamers themselves.
According to media sources, in addition to Sony and Nvidia, other corporations, including Alphabet Inc’s Google, have voiced concerns to the FTC regarding the transaction.
Microsoft has committed to maintaining Call of Duty on the PlayStation.
The popularity of the first-person shooter franchise has not waned nearly two decades after its inception, with the most recent iteration selling $1 billion in its first ten days of release in October.
According to the American IT behemoth, the transaction involves more than just Call of Duty. It
has stated that acquiring the developer of Overwatch and Candy Crush would accelerate its growth in mobile, Desktop, and cloud gaming, as well as consoles, allowing it to compete with Tencent and Sony.
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