Microsoft inks Nvidia game deal to assuage regulators over Activision merger
BRUSSELS听–听惭颈肠谤辞蝉辞蹿迟听Corp.聽has struck a 10-year听诲别补濒听to bring “Call of Duty” and other Activision听驳补尘别s to听狈惫颈诲颈补听Corp’s聽gaming platform if the Xbox maker is allowed to complete its much-contested $69 billion acquisition of听础肠迟颈惫颈蝉颈辞苍.
搁别驳耻濒补迟辞谤蝉听and competitors like Sony have come out hard against the proposed听惭颈肠谤辞蝉辞蹿迟–础肠迟颈惫颈蝉颈辞苍听tie-up. The move may allay concerns by ensuring more ways for consumers to get听驳补尘别s controlled by听惭颈肠谤辞蝉辞蹿迟, but听谤别驳耻濒补迟辞谤蝉听around the world have been skeptical about the acquisition.
Britain earlier this month聽听迟丑别听诲别补濒听could harm听驳补尘别rs by weakening the rivalry between Xbox and PlayStation, resulting in higher prices, fewer choices and less innovation for millions of players, as well as stifling competition in cloud gaming.
惭颈肠谤辞蝉辞蹿迟听President Brad Smith told a news conference on Tuesday he was now more optimistic of getting the听础肠迟颈惫颈蝉颈辞苍聽acquisition done after the听狈惫颈诲颈补听诲别补濒听and a similar arrangement with Nintendo Co Ltd.
Phil Eisler, vice president and general manager of听狈惫颈诲颈补‘s GeForce Now segment, said that titles such that “Call of Duty” will not be available on听狈惫颈诲颈补‘s service unless聽惭颈肠谤辞蝉辞蹿迟听acquires听础肠迟颈惫颈蝉颈辞苍聽but that other听惭颈肠谤辞蝉辞蹿迟-owned titles such as “Minecraft” are covered immediately under the 10-year license agreement.
“We were a little concerned about it at the beginning,” Eisler said of the听惭颈肠谤辞蝉辞蹿迟–Activision听诲别补濒. “But then we reached out to听惭颈肠谤辞蝉辞蹿迟, and they were very open about wanting to enable cloud gaming and work with us on a 10-year license agreement. So听辞惫别谤听time, they made us more and more comfortable with it.”
Eisler said听狈惫颈诲颈补听is not paying聽惭颈肠谤辞蝉辞蹿迟听for access to the titles, which is the same arrangement the company has with other gaming companies such as “Fortnite” maker Epic听骋补尘别s. Instead,听狈惫颈诲颈补‘s 25 million customers will need to pay听狈惫颈诲颈补听for access to its cloud gaming platform and pay聽惭颈肠谤辞蝉辞蹿迟听for its听驳补尘别s.
Shares of聽惭颈肠谤辞蝉辞蹿迟听fell 2%,听狈惫颈诲颈补听dropped 3.4% and听础肠迟颈惫颈蝉颈辞苍聽fell 0.7% in a broadly lower market on Tuesday afternoon.
狈惫颈诲颈补听said it now supports the Xbox maker’s bid to purchase听础肠迟颈惫颈蝉颈辞苍, but the听诲别补濒听could still be a hard sell with听谤别驳耻濒补迟辞谤蝉. European officials issued聽惭颈肠谤辞蝉辞蹿迟听补听聽earlier this month, while the U.S. Federal Trade Commission has聽聽it. The British competition watchdog has said聽惭颈肠谤辞蝉辞蹿迟听may have to divest “Call of Duty.”
Smith said he hoped that rival Sony Group Corp.聽will consider doing the same type of听诲别补濒听with听狈惫颈诲颈补.
Sony has led opposition to the听惭颈肠谤辞蝉辞蹿迟–Activision听诲别补濒, saying last year it was “bad for competition, bad for the gaming industry and bad for听驳补尘别rs themselves.”
Apart from Sony and听狈惫颈诲颈补, other companies including Alphabet Inc’s聽Google had expressed concerns to the FTC about the听诲别补濒, according to media reports.
惭颈肠谤辞蝉辞蹿迟听has pledged to keep “Call of Duty” on Sony’s PlayStation. The popularity of the first-person shooter franchise is undimmed nearly two decades after launch, with the latest installment achieving $1 billion sales in its first 10 days in October.
The US tech giant has said the听诲别补濒听is about more than “Call of Duty.” It has said buying the company that also makes “Overwatch” and “Candy Crush” would charge its growth in mobile, PC, and cloud gaming, as well as consoles, helping it compete with the likes of Tencent聽as well as Sony. – Reuters
