EU approves Microsoft's $69 billion acquisition of Activision Blizzard, clearing major hurdle

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Microsoft offered remedies in cloud gaming to earn the approval of European Union regulators for the $69 billion Activision Blizzard acquisition.

Microsoft offers remedies for cloud gaming

Microsoft has broadly fallen behind with its Xbox in the latest generation of consoles versus Sony's PlayStation 5 and the Nintendo Switch. But the U.S. giant has staked its future in the market on so-called cloud gaming, a nascent part of the industry. But the key to success for cloud gaming will also be a large catalogue of games that users could immediately access via a subscription service, sort of like Netflix. That is one part of the rationale behind Microsoft's proposed Activision takeover.about Microsoft's ability to secure a dominant position in cloud gaming before it even takes off.

But the European Commission said Microsoft offered remedies to allay competition concerns. Consumers that have bought or will buy an Activision game will be able to stream these titles on any cloud gaming platform of their choice. Microsoft will also offer royalty-free licenses to cloud gaming platforms to stream Activision games, if a consumer has purchased them. The idea is that gamers do not necessarily need to stream the game where they buy it.

 

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