The European Commission has stated that Microsoft is offering remedies to allay competition concerns allowing consumers to stream titles on any cloud computing platform of their choice.
On Monday, May 15, the EU regulators consent Microsoft’s long-awaited $69 billion acquisition of gaming giant Activision Blizzard. The European Commission, the EU’s executive arm, has stated that Microsoft has introduced remedies in the field of cloud gaming that is currently marred by antitrust concerns. These remedies will allow users to stream the Activision games they purchase on any cloud streaming platform.
This is a big win for tech giant Microsoft after the UK’s supreme competition authority blocked the deal last month. Regulators around the world have shared concerns about whether Microsoft’s acquisition of Activision could distort competition in the cloud gaming and console market.
Some regulators have also asked if Microsoft might take Activision’s games and keep them exclusively on its platform. As we know, Activision Blizzard is behind some of the biggest console and PC games in the world. This includes popular names like World of Warcraft and Call of Duty Franchise.
The UK’s Competition and Markets Authority (CMA) said last month that the deal would reduce competition in the emerging cloud gaming market. Moreover, he also indicated that Microsoft will find it. Commercially beneficial for placing all Activision games exclusively on its platform. However, the Capital Markets Authority stated that the acquisition will not reduce competition in the gaming hardware market.
Besides regulators, Microsoft has also faced opposition from competitors such as PlayStation game console manufacturer Sony. But in February, Microsoft chief Brad Smith met with EU officials where he said they would bring Xbox PC games to Nvidia’s cloud gaming service. Nvidia has also expressed its opposition to the acquisition. Moreover, Microsoft also signed a 10-year deal with Nintendo to bring Call of Duty to its platform.
Microsoft offers remedies for cloud gaming
Currently, Microsoft’s Xbox lags far behind other competitors such as Sony PlayStation 5 as well as Nintendo Switch. However, the US tech giant is placing great emphasis on the so-called cloud gaming market. Much of the recent investigations in the European Union focus on cloud gaming.
Cloud gaming allows users to stream games directly from the servers eliminating the need for expensive dedicated hardware such as consoles. Users can play this game on all existing devices such as smartphones, TVs, and laptops.
However, for gamers to succeed in the cloud computing space, they will have to offer a large catalog of games that users can access right away from the subscription service. Microsoft is looking to capture this market with the acquisition of Activision Blizzard.
The European Commission has stated that Microsoft is offering remedies to allay competition concerns. Consumers who purchase Activision Games will be able to stream titles on any cloud computing platform of their choice.
In addition, Microsoft will also be able to offer royalty-free licenses to cloud gaming platforms for Activision game streaming.
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Bhushan is a financial technology enthusiast with a good knack for understanding financial markets. His interest in economics and finance has turned his attention towards the new emerging Blockchain technology and Cryptocurrency markets. He is persistent in the learning process and keeps himself motivated by sharing the knowledge gained. In his spare time he reads fantasy and thriller novels and occasionally explores his culinary skills.
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