Microsoft is inching closer to securing its acquisition of Activision Blizzard, having reportedly struck a series of licensing deals in order to convince the European Union to let the purchase go ahead. The subscription service, which dominates competing efforts from Sony and Amazon, is moving into dozens of new countries.
Microsoft's latest set of concessions have reportedly been enough to convince the EU to let the acquisition of Activision Blizzard go ahead. Licensing deals with Nintendo and Nvidia have been put forward in order to address concerns that the purchase would reduce competition in the video game industry.
Activision makes negligible revenue from Microsoft compared to Sony Interactive Entertainment. An SEC filing reveals that Sony is one of Activision's major customers, and that the company's revenue from the Sony PlayStation platform was $1.6 billion in the 2018 fiscal year.
The report comes following Phil Spencer's statement that the 'Xbox will exist' if it doesn't successfully buy Activision Blizzard. Microsoft is in the midst of battling regulators to earn approval for its landmark Activision Blizzard deal, and it seems recent licensing deals with key rivals may have been enough to tip the scales.
With its offer of licensing deals to rivals, it sounds like Microsoft is getting closer to winning the Activision Blizzard acquisition. Microsoft is reportedly offering Nintendo and Nvidia a range of concessions, including the ability to use its cloud gaming technology. This could mean that the two companies would be able to use Microsoft's cloud gaming technology in the future.
For more than a year now, fans around the world have been waiting to see whether Xbox's proposed purchase of Activision Blizzard will be approved. The purchase of the company would give Microsoft a huge library of games, including the popular Call of Duty franchise. Despite the long wait, it appears that Microsoft is making progress towards getting the deal approved.
Microsoft is also attempting to alleviate any concerns that the acquisition would reduce competition in the gaming industry. The company recently announced a series of licensing deals with key rivals, including Nintendo and Nvidia. These deals are reportedly designed to ensure that there is still competition in the gaming market, even if the acquisition of Activision Blizzard goes ahead.
Phil Spencer recently sat down with Charleyy Hodson to discuss Xbox, Call of Duty and Activision Blizzard, mobile gaming, and AI. During the interview, Spencer stressed that Microsoft is committed to ensuring competition in the gaming industry, and that the company is making every effort to get EU approval for the Activision Blizzard acquisition.
It remains to be seen whether Microsoft will be successful in securing the Activision Blizzard acquisition. The company is reportedly working hard to ensure that there is still competition in the gaming industry, and that the purchase does not reduce consumer choice. Only time will tell whether the EU will approve the deal.
