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Brussels — microsoft Play an Xbox PC game on Tuesday Nvidia’s Cloud Gaming Services after the chipmaker reportedly voiced its opposition to Microsoft’s major gaming deal.
The announcement comes after Microsoft’s president, Brad Smith, met with European Union officials on Tuesday to convince them of the planned $69 billion acquisition. activision blizzard Good for competition.
Microsoft offers an olive branch to block the acquisition, thereby expanding its gaming division, which accounts for 9% of total revenue. While sales of Microsoft’s Xbox console are slowing, the company is using its piles of cash to expand the collection of games it can sell and let people play through its cloud data centers.
Microsoft president Brad Smith said at a press conference that the company’s Xbox games will soon be available on Nvidia’s GeForce Now cloud gaming service. Smith said all his Activision Blizzard titles will move to GeForce Now once the deal with Activision is finalized.
Nvidia is now participating in Microsoft’s pending transaction for regulatory purposes, the companies said in a statement. Joint statement Confirmed 10-year contract between the two companies. in January reported by Bloomberg Nvidia filed a complaint with the US Federal Trade Commission regarding its dealings with Activision.
Jeff Fisher, senior vice president of GeForce at Nvidia, said: was quoted as saying. “Through this partnership, many of the world’s most popular titles will be available from the cloud at the click of a button for millions of gamers to play.”
Microsoft has proposed to buy Activision Blizzard in January 2022, but the buyer has faced backlash from regulators in the US, European Union and UK.
“Nvidia’s arrangement makes sense because it now addresses all the issues that regulators have raised as not only concerns but, in some cases, concerns,” Smith said at a press conference.
In November, the EU’s executive arm, the European Commission, launched a detailed investigation into the deal, citing concerns that it could reduce competition in the video game market.
Activision Blizzard is the company behind the popular game franchise Call of Duty. The EU Commission said last year it was concerned that Microsoft could block access to games on other platforms if the deal went through.
The committee is also concerned that it could give Microsoft an unfair advantage in the nascent field of cloud gaming. library can be accessed. With the acquisition of Activision, several high-profile titles will be added to Game Pass.
Nvidia’s GeForce Now has more than 25 million members, while Microsoft said 25 million people subscribed to Game Pass last year. Nvidia offers his GeForce Now tiers for free and paid, but high resolution is only available to paying users. GeForce Now members can stream games purchased from Microsoft’s app store via the cloud, along with games from the Epic Games and Steam app stores.
In December, Microsoft said it had “entered into a 10-year commitment” to bring Call of Duty to Nintendo once the Activision acquisition was completed. was considered a move.Tuesday, Smith murmured The two signed a “binding 10-year legal agreement” to bring Call of Duty to Nintendo players on the same day as Microsoft’s Xbox.
Smith led a delegation on Tuesday that included Microsoft Gaming CEO Phil Spencer and Activision Blizzard CEO Bobby Kotick, Reuters reported, citing a European Commission document seen by the news agency.Reuters Sony’s head of games, Jim Ryan, was also present, according to the news agency. SonyMicrosoft’s biggest rival opposes the acquisition of Activision.
Sony was not immediately available for comment when contacted by CNBC.
European regulators aren’t the only ones concerned about the deal.
Britain’s Competition and Markets Authority said this month the takeover could raise competitive concerns and lead to higher prices, less choice and less innovation. said it was possible.
In December, the FTC filed an antitrust suit against Microsoft, accusing it of trying to block a deal with Activision.
Parent of Google alphabet Bloomberg reported that he also turned himself in to the FTC unhappy with Microsoft’s deal.
A Google spokesperson told CNBC in an email: “The European Commission has sought our views in the course of its investigation into this matter. Upon request, we will ensure that all views are taken into account. We will continue to work together throughout the process.”
Microsoft claims the Activision Blizzard acquisition won’t hurt video game competition, instead increasing competition from big players like Sony and Chinese giant Tencent.
Microsoft Sony and Nintendo in the video game business. Microsoft’s Xbox has lagged behind Sony’s PlayStation 5 And the Nintendo Switch. Sony and Nintendo’s popularity stems from a number of successful first-party games. Microsoft is looking to bolster its game library with its acquisition of Activision.
Shares of Activision Blizzard soared in Tuesday’s US trading session following the announcement.
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