Microsoft’s Pact With Ubisoft Signals Long-Term Plan on Videogame Business

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Microsoft and Activision Blizzard submitted the Ubisoft deal to the U.K. Competition and Markets Authority on Tuesday.

Microsoft ‘s new pact with French game publisher Ubisoft is sending a clear signal to investors about long-term plans for its videogame business.

The regulator will now give the deal a fresh look. It includes noteworthy concessions, making approval more likely, wrote Raymond James analyst Andrew Marok in a Tuesday note. Wedbush analyst Nick McKay told Barron’s that even though Microsoft’s Xbox Game Pass likely won’t be the only streaming service to offer new Call of Duty games, it still shifts the landscape from a period where Call of Duty was only sold for $70 a pop.

He thinks the deal will still position Microsoft to become a Netflix -like powerhouse in the game streaming business.

 

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