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[NickFire]

It is still technically divestment.

From gamesindustry.biz.

It is divestment because, without this new arrangement, Microsoft would have also acquired the cloud gaming rights of ABK games; that was part of the deal. But now they won't have these rights -- and Ubisoft will instead get it after paying money to Microsoft -- because Microsoft would divest those rights.

Strictly speaking, behavioral remedies would have been if Microsoft still got the Cloud gaming rights but made promises that it would license ABK games to all competitors at fair market rates.

IMO, that all feels like someone is trying to re-define what divestment means for the optics.

For example, I would not consider a 15 year lease to be a divestment of the real estate by the landlord. Landlord still owns the property. They just let the tenant use it for 15 years for a fee.

 

[Schmick]

Who's this Gaf you speak of? Gaf did not trademark Power of the Cloud™ for over 10 years now.

lol.....why you putting this on GAF?

I've been reading the last few pages of this thread, seems to me that a lot of of posters are suggesting Xbox have lost an advantage on exclusivity (with regards to Gamepass) because of this deal with Ubisoft, which in my opinion isn't true. The market size of cloud gaming in the gaming industry is tiny equating to just over $1b last year of the overall gaming industry which is $250b (expected to grow at compound growth rate of 45.5%). This deal with Ubisoft is only cloud gaming. It does not include native. The numbers just dont add up, players choose to game natively. Gamepass will still have an advantage.

The restructuring ensures that ABK titles past and present must come to PS for the next 15 years.

Cope has shifted from "Exclusive to XBOX" to "At least it will be Native on the XBOX." All while side stepping that Microsoft has to pay Ubisoft to stream the games on GP that they will own if the deal goes through.

The narrative has shifted from "I'll only ever play native and cloud gaming sucks" to "cloud has a place in this industry and I'll be using it to play games."

 

[X-Wing]

So... I'm really not sure that this doesn't exclude the EU:

CMA finalises decision to block original merger after rejecting submissions by Microsoft to revisit its original decision;

Microsoft submits new, restructured deal for review, triggering a fresh Phase 1 investigation by CMA;

Under the new deal, Microsoft will not acquire the cloud streaming rights to all current and future Activision games released during the next 15 years (excluding in the EEA)

Microsoft submits new deal for review after CMA confirms original deal is blocked

The CMA has opened a new phase 1 investigation into a new, restructured deal by Microsoft to buy Activision.

www.gov.uk

“The agreement with Ubisoft has been structured so that Microsoft will still acquire the rights needed to honor fully its legal obligations under its commitments to the European Commission, as well as its existing contractual obligations to other cloud game streaming providers, including Nvidia, Boosteroid, Ubitus, and Nware,” says Smith.

Microsoft to sell off Activision cloud gaming rights to Ubisoft in bid for UK approval

A big change to Microsoft’s Activision Blizzard acquisition.

www.theverge.com

 

[gothmog]

That the CMA reconsidered the deal at all after initially blocking it suggests that they are open to this. I would be very surprised if they rejected this proposal. Not unhappy, necessarily. But surprised.

I agree but think the 15 year thing is going to be a problem. It's the same arrogance that has gotten them blocked twice now.

 

[Pelta88]

If you are going to continue debating in bad faith... have at it with someone else. It seems as if you are attempting to misrepresent my statements as "MS wanted this all along", which is incorrect and extremely close to a strawman argument. My statements clearly lay out the argument that gamepass is better after this acquisition than before. I also am factually stating that the acquisition has other motives besides "cutting PS from access to ABK titles".

My last response to you for a while since you're clearly side stepping facts as laid out by Microsoft through legally binding documents and Microsoft's internal emails.

1. According to Microsoft. Gamepass benefits from exclusivity. This deal ensures that Activision's games remain multiplat in the UK and quite possibly the entire EU.
2. Microsoft's goal, before regulatory scrutiny, was to cut PS out of Activision games. They failed.

You go spin that as a win while the rest of us grab popcorn and watch. The mental gymnastics is fascinating.

 

[Punished Miku]

What sort of deal do ya'll think Nintendo and Sony could reach with Ubisoft to add the ability to stream these games? What I mean is, in what ways will Sony or Nintendo be able to extract money from their customers streaming someone else's games? Do you think it will be a separate ubisoft marketplace that kicks 30% back to the platform holders?

Sony would likely not be that interested in having it on cloud through their own native service since they get 30% of hard copy sales and would likely prefer that. But they already agreed to have Ubisoft + on their system and probably can't undo that now. They might not get anything extra from what the original Ubisoft + deal just being available on PS already was negotiated to be.

Ubisoft has obvious incentive to keep it for Ubisoft +. Just depends on what the prices are. They'd probably be willing to put it on Nintendo immediately considering Ubisoft + isn't on there.

 

[MisterXDTV]

IMO, that all feels like someone is trying to re-define what divestment means for the optics.

For example, I would not consider a 15 year lease to be a divestment of the real estate by the landlord. Landlord still owns the property. They just let the tenant use it for 15 years for a fee.

Agreed, that's why we are not sure that CMA will accept this as a solution...

But this is probably a desperation move by MS....

If it's blocked again it's Game Over

 

[MarkMe2525]

It's simple, they could reach a deal to include Ubisoft game streaming in the Playstation Plus (Extra/Premium)/ Nintendo online subscription

That's a possibility. I wonder what that price tag would be if Ubisoft is interesting in going that route. Of course, we won't know these answers for some time.

Edit: I was just reminded of Ubisoft+ by another user. I imagine it would be advantageous of Ubi to slap them on there.

 

[Topher]

Agree to disagree. This is the opposite of what Microsoft wanted when they announced this acquisition.

• Call of Duty will now remain on PlayStation for at least 10 years.
• Activision games may not be on Game Pass and xCloud now.
• Ubisoft will have perpetual, lifetime cloud rights to all past and future gaming releasing until 2038!
• All ABK and Xbox games will be on GeForce Now.
• Game Pass wasn't growing on console already. PC gamers can just sub to GeForce Now or Ubisoft+ so ABK games won't be a differentiator there. And this will hamper xCloud growth -- which was going to be the main driving sector for Microsoft.

This won't help them sell more consoles; this won't help them increase GP subscribers; this won't help them differentiate xCloud games.

This is a lose-lose situation. They are just sticking with it to avoid paying the penalty and getting Candy Crush money now.

Definitely going to have to disagree that this is lose-lose my man. If they didn't do this to get the deal approved then your bulleted points wouldn't matter as they wouldn't own any of ABK games anyway. All the ABK games would continue being on PS. None of the ABK games would be on Game Pass regardless. Ubisoft and GFN wouldn't have rights to games MS wouldn't own anyway. Not owning ABK isn't going to help Game Pass either. So all the consequences you list are essentially negated by MS not owning ABK at all. This is a win for Microsoft because it allows the deal to go through.

 

[MarkMe2525]

My last response to you for a while since you're clearly side stepping facts as laid out by Microsoft through legally binding documents and Microsoft's internal emails.

1. According to Microsoft. Gamepass benefits from exclusivity. This deal ensures that Activision's games remain multiplat in the UK and quite possibly the entire EU.
2. Microsoft's goal, before regulatory scrutiny, was to cut PS out of Activision games. They failed.

You go spin that as a win while the rest of us grab popcorn and watch. The mental gymnastics is fascinating.

Indeed the mental gymnastics are quite fascinating. So, in your eyes native=streaming. Being able to natively play vs stream a game holds little value. I should bookmark this comment. My my how the narrative has shifted so quickly.

Edit: are you ok drganon ? I'm getting some Ezekiel vibes from you.

 

[Deleted member 848825]

I am a fan of cloud gaming, but it's not debatable that an xbox user is going to be able to download future ABK titles and play them at their highest fidelity (for consoles) while Sony and Nintendo players (if ubisoft does strike a deal with them) are relegated to streaming, which by all accounts is inferior. To act as if this is not in MS favor is to be willfully ignorant.

I'm confused. Why are we talking about a native advantage for Xbox. There's already a 10 year agreement isnt there? This 15 year cloud one is an addition not instead of. Unless my understanding is wrong?

 

[Forsythia]

Goddamn, this just keeps on giving.

 

[Topher]

I've been reading the last few pages of this thread, seems to me that a lot of of posters are suggesting Xbox have lost an advantage on exclusivity (with regards to Gamepass) because of this deal with Ubisoft, which in my opinion isn't true. The market size of cloud gaming in the gaming industry is tiny equating to just over $1b last year of the overall gaming industry which is $250b (expected to grow at compound growth rate of 45.5%). This deal with Ubisoft is only cloud gaming. It does not include native. The numbers just dont add up, players choose to game natively. Gamepass will still have an advantage.

The narrative has shifted from "I'll only ever play native and cloud gaming sucks" to "cloud has a place in this industry and I'll be using it to play games."

Fair enough. I guess I'm not seeing the same narratives you are.

 

[X-Wing]

I'm confused. Why are we talking about a native advantage for Xbox. There's already a 10 year agreement isnt there? This 15 year cloud one is an addition not instead of. Unless my understanding is wrong?

It's right since those agreements were signed with the other platform holders directly and not just a guarantee to regulators.

 

[MisterXDTV]

This is a win for Microsoft because it allows the deal to go through.

Actually, we don't know that...

MS HOPES that...

 

[MarkMe2525]

I'm confused. Why are we talking about a native advantage for Xbox. There's already a 10 year agreement isnt there? This 15 year cloud one is an addition not instead of. Unless my understanding is wrong?

The 10 year agreement is only for Call of Duty. The discussion we are having is revolving around every other future ABK title.

 

[mckmas8808]

So the CMA killed the original deal? @ 0:23

Is it............

"Oooh-BE-Soft"

or

"You-BE-Soft"

?????

 

[POKEYCLYDE]

It's the other way around.

Ubisoft will compensate Microsoft for the cloud streaming rights to Activision’s games through a one-off payment and through a market-based wholesale pricing mechanism, including an option that supports pricing based on usage.

Is this referring to the price of divestment? The "option that supports pricing based on usage" is a confusing add-on. Sounds like Ubisoft will pay Microsoft X millions or billions for the cloud streaming rights and/or Microsoft will get a percentage of the revenue Ubisoft generates from the cloud streaming rights of Activision's games.

But I don't know. I'm not smart enough to understand what it all means ahaha.

 

[Topher]

Actually, we don't know that...

MS HOPES that...

Correct.....I said that on the assumption it goes through, which I think it will.

 

[Topher]

Sycophancy.

 

[Punished Miku]

The 10 year agreement is only for Call of Duty. The discussion we are having is revolving around every other future ABK title.

Could be some weirdness in 2033 when Diablo V comes out. Possible Xbox exclusive, but PS6 has it on cloud only through Ubisoft+. Just a ridiculous situation all around lol.

 

[MarkMe2525]

Is it............

"Oooh-BE-Soft"

or

"You-BE-Soft"

?????

I think it's Ewww-Be-Soft

 

[MarkMe2525]

Could be some weirdness in 2033 when Diablo V comes out. Possible Xbox exclusive, but PS6 has it on cloud only through Ubisoft+. Just a ridiculous situation all around lol.

Very strange circumstances indeed

 

[POKEYCLYDE]

I haven't seen any language mention Activision Blizzard. Just Activision. Wonder if Microsoft is trying to weasel word it's way into not divesting Blizzard game's cloud streaming rights.

 

[Drell]

I think it's Ewww-Be-Soft

U (french u) bee soft because it's basically "Union des Bretons Indépendants".

 

[Bernoulli]

It is still technically divestment.

From gamesindustry.biz.

It is divestment because, without this new arrangement, Microsoft would have also acquired the cloud gaming rights of ABK games; that was part of the deal. But now they won't have these rights -- and Ubisoft will instead get it after paying money to Microsoft -- because Microsoft would divest those rights.

Strictly speaking, behavioral remedies would have been if Microsoft still got the Cloud gaming rights but made promises that it would license ABK games to all competitors at fair market rates.

since it's only 15 years the CMA should block anyway

 

[Kenneth Haight]

Sycophancy.

 

[Topher]

I haven't seen any language mention Activision Blizzard. Just Activision. Wonder if Microsoft is trying to weasel word it's way into not divesting Blizzard game's cloud streaming rights.

Every reference in Microsoft's statement is "Activision Blizzard".

Microsoft and Activision Blizzard Restructure Proposed Acquisition

In January 2022, Microsoft announced the proposed acquisition of Activision Blizzard, Inc., to advance our goal to bring more creative and innovative games to players everywhere and on any device. Today, we are taking another important step regarding this transaction.

blogs.microsoft.com

 

[Neofire]

I see what MS is trying to do, hopefully the CMA sees it too. Smh

 

[Bernoulli]

I see what MS is trying to do, hopefully the CMA sees it too. Smh

that the only hope now

this getting 100% approved unless the CMA sees the big plan or they bring back consoles concerns wich they should

 

[mckmas8808]

Matt Booty 2020: We're in a unique position to go Spend Playstation out of business


Matt Booty 2023: We're in a unique position where we pay Ubisoft to license the games we purchased for 70 Billion... From ubisoft. While also ensuring Activision's portfolio remains multiplat.


Pure, not from concentrate, and 100% organic incompetence. And yes, you're a sycophant if you suggest otherwise.

I 100% agree with you. This is straight incompetence. Unless it HONESTLY was just about getting ABK's mobile division all along.

 

[Darsxx82]

Agree to disagree. This is the opposite of what Microsoft wanted when they announced this acquisition.

• Call of Duty will now remain on PlayStation for at least 10 years.

It's been a long time since MS assumed this situation. In fact, from a business and revenue standpoint, it was always the most reasonable.

• Activision games may not be on Game Pass and xCloud now.

You have to be very delusional in believing that MS and Ubisoft are not going to reach an agreement so that these games are in Xcloud day one ..

• Ubisoft will have perpetual, lifetime cloud rights to all past and future gaming releasing until 2038!

• All ABK and Xbox games will be on GeForce Now.

The bad for the good. less control over the IPS but greater business opportunities and income. The other option was neither one thing nor the other.

MS's proposal is the smartest move that could be made in this situation.

PS .To play ABK and Xbox games via Gforce you first have to buy the game or subscribe to Gamepass... I see a win win

• Game Pass wasn't growing on console already. PC gamers can just sub to GeForce Now or Ubisoft+ so ABK games won't be a differentiator there. And this will hamper xCloud growth -- which was going to be the main driving sector for Microsoft.

The console effects that the acquisition may have will be known when the ABK games reach the Xbox console catalog. The same can be said of Bethesda+Zenimax even though it's been a year since its acquisition...... (Starfield??)
Again, playing Xbox and ABK games on GForce requires game purchase or Gamepass or Ubi+ subscription. If people have to choose, the Ubi+ option is certainly not always the desired option over Gamepass. Maybe the opposite.

This won't help them sell more consoles; this won't help them increase GP subscribers; this won't help them differentiate xCloud games.

No one can be conclusive on any of that. But there is something clear, MS is going to increase its income enormously with the acquisition of ABK and that income can go to improve its catalog offer and subscriptions.

This is a lose-lose situation. They are just sticking with it to avoid paying the penalty and getting Candy Crush money now.

LOL, you talk as if the other IPs are not going to generate revenue for MS and are only going to pay 68B for CandyCrush

The reality is that, YES, MS loses a certain degree of control over ABK IPs when it comes to cloud gaming, but it expands the options to achieve higher performance and revenue while facilitating advancement and development of cludgaming that today is residual.

Besides, Gamepass/Xcloud is not limited to ABK games, MS has another 23 Studios of its own and agreements with Third party to "compete" against other competitors in streaming of games suscription.

In short, it may not be the deal that MS was looking for in the beginning, but it is still a deal with intact potential. MS's move "to save" the acquisition is nothing short of genius as long as it doesn't hurt revenue potential, and keep the ABK unit without needing to divest A-B or K that would have made the 69b investment questionable.

 

[cireza]

this getting 100% approved unless the CMA sees the big plan

 

[Kenneth Haight]

 

[havoc00]

 

[Hero of Spielberg]

I'm seeing all this blowing up on Twitter about this update. Wasn't a divestiture of cloud gaming what was on the cards for the last month or so? Why is Ubisoft having cloud streaming of ActiBlizz titles a bad thing? I have no idea whats going on lol

 

[MasterCornholio]

I'm seeing all this blowing up on Twitter about this update. Wasn't a divestiture of cloud gaming what was on the cards for the last month or so? Why is Ubisoft having cloud streaming of ActiBlizz titles a bad thing? I have no idea whats going on lol

Just that the old deal is dead so they had to offer a divestment in the new one. The less they lose the better it is for Microsoft. However the worst case is if they lose the entire thing.

That's basically it.

 

[Hero of Spielberg]

Just that the old deal is dead so they had to offer a divestment in the new one. The less they lose the better it is for Microsoft. However the worst case is if they lose the entire thing.

That's basically it.

OK. I thought I must have missed something as I thought that this new deal had to be significantly different from the old one in order to appease CAT and so this was old news ...

 

[MasterCornholio]

OK. I thought I must have missed something as I thought that this new deal had to be significantly different from the old one in order to appease CAT and so this was old news ...

Has nothing to do with the CAT. Old deal is dead and this new one is being submitted to the CMA for their approval. Right now it's in Phase 1 and they have upto the 18th of October to come to a conclusion.

Maybe it will get approved in Phase 1 or maybe it will go to Phase 2. We are just waiting to see what will happen.

 

[Unknown Soldier]

Stop trying to make Sarah Bond happen Phil, it’s not going to happen.

He's just talking up his successor. She's taking over as soon as Phil "leaves the company to pursue other opportunities" a week after this shit show acquisition finally closes.

 

[Heisenberg007]

He's just talking up his successor. She's taking over as soon as Phil "leaves the company to pursue other opportunities" a week after this shit show acquisition finally closes.

To spend more time with his family*

 

[Mr Reasonable]

I'm confused. Why are we talking about a native advantage for Xbox. There's already a 10 year agreement isnt there? This 15 year cloud one is an addition not instead of. Unless my understanding is wrong?

Absolutely no way in the world do Microsoft release Call Of Duty for Xbox and PC but make everyone else stream it. Assuming they have hardware that can run it (For the avoidance of doubt, if it launches on Series consoles, it launches on PS5).

I know that I said earlier that Microsoft could limit competitor hardware to streamed games, and I know you aren't replying to me, but my intention was to say what a waste of time these objections have been if the deal goes through with this amendment, not that I think Microsoft is desperate to find a way to make things suck for PlayStation COD players as some people seem to think.

 

[GHG]

I'm on vacation at the moment so haven't really been able to follow things as closely as I'd like.

Is the deal still going through easily and is the UK still some little meaningless island?

 

[MasterCornholio]

I'm on vacation at the moment so haven't really been able to follow things as closely as I'd like.

Is the deal still going through easily and is the UK still some little meaningless island?

I wouldn't say it was easy. Easy would have been getting it through without concessions. As for the UK being meaningless they are the ones that killed the old deal.

 

[GHG]

I wouldn't say it was easy. Easy would have been getting it through without concessions. As for the UK being meaningless they are the ones that killed the old deal.

Failed state.

Microsoft should close over their fat balding heads.

Trump would never have stood for this, it would have meant war.

 

[Ronin_7]

The 10 year agreement is only for Call of Duty. The discussion we are having is revolving around every other future ABK title.

Activision only makes Call of Duty and some Random Crash Game here and there.

Blizzard is utter Trash, Diablo 4 was a miracle.

King is mobile.

Call of Duty is basically all that matters in this for PlayStation.

Last Crash game:

Crash Team Rumble

Crash Team Rumble for PlayStation 5 game reviews & Metacritic score: Crash Team Rumble is a 4v4 team-based competition where the iconic heroes and villains of the crash universe battle to capture more Wumpa fruit than the other t...

www.metacritic.com

Overwatch 2 also completely collapsed:

Overwatch 2

Overwatch 2 for PC game reviews & Metacritic score: THE DAWN OF A NEW OVERWATCH - Reunite and stand together in a new age of heroes. Overwatch® 2 builds on an award-winning foundation of epic competitive play, a...

www.metacritic.com

Obligatory:

https://steamdb.info/app/2357570/

 

[Ronin_7]

Failed state.

Microsoft should close over their fat balding heads.

Trump would never have stood for this, it would have meant war.

Closing over the UK would meant a 20B dollars+ fine to Microsoft.

 

[Kenneth Haight]

I'm on vacation at the moment so haven't really been able to follow things as closely as I'd like.

Is the deal still going through easily and is the UK still some little meaningless island?

Look M Macaron get in here, he’s offending British people

No one cares though because it’s funny… and true, and a joke

 

[X-Wing]

CMA the saviour of gamers lol. Thankfully gamers now can pay for 2 subscriptions instead of 1.

On a corp positive: could save ubi from nose diving, create closer relationship etc

No one will have to pay for 2 subscriptions.

 

[GHG]

Closing over the UK would meant a 20B dollars+ fine to Microsoft.

We don't negotiate with terrorists.