NVDA - Microsoft signs 10-year cloud deal with Nware after UK blocks Activision deal

2023-04-28 10:48:05 ET

Microsoft ( NASDAQ: MSFT ) said on Friday that it signed a 10-year cloud deal to bring its and Activision Blizzard's ( NASDAQ: ATVI ) games to Spanish cloud gaming platform Nware, just days after a U.K. regulator said that its deal to buy Activision Blizzard ( ATVI ) would negatively impact the cloud gaming market.

"While it's still early for the emerging cloud segment in gaming, this new partnership combined with our other recent commitments will make more popular games available on more cloud game streaming services than they are today," Microsoft President Brad Smith said in a tweet .

In February, Microsoft ( MSFT ) said it signed a similar deal with Nvidia ( NVDA ) to bring PC games and XBox games to its GeForce streaming service. Microsoft also signed a 10-year deal with Nintendo ( OTCPK:NTDOY ) to bring Call of Duty to the Japanese video game and entertainment giant.

Microsoft ( MSFT ) has repeatedly offered a 10-year license agreement on Call of Duty to Sony - similar to the one it signed with Nintendo - but Sony ( SONY ) has not agreed to terms and has repeatedly been against the Microsoft, Activision deal.

On Wednesday, the U.K.'s Competition and Markets Authority said Microsoft ( MSFT ) already has "strong advantages" in cloud gaming, as it owns Windows, it has the Azure cloud platform and Xcloud, along with its Xbox gaming base, bringing its market share of cloud gaming to be between 60% and 70%.

"We have therefore concluded that combining Activision’s strong portfolio of games with Microsoft’s current multiple cloud gaming strengths would enable Microsoft to harm current and emerging cloud gaming competitors by withholding Activision games from them and, unlike in the case of consoles, we have not found that there are any material reasons to stop it doing this," the CMA wrote in its decision.

Microsoft ( MSFT ) shares rose around 0.7% in early trading on Friday.

More on Activision and Microsoft deal

• Activision tumbles as UK blocks Microsoft deal on competition concerns
• UK blocking of Microsoft-Activision deal surprises Wall Street analysts
• With Microsoft-Activision deal on life support, sniping ramps up ahead of appeal

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