Tech News Summary:
- Microsoft and Activision Blizzard have extended the deadline for their proposed acquisition deal in order to secure regulatory approval in the UK. The new deadline is October 18th, and Microsoft will owe Activision Blizzard a termination fee of up to $3.5 billion if either party decides to cancel the acquisition.
- The acquisition has faced opposition from regulators in the UK and US. The Competition and Markets Authority (CMA) in the UK blocked the deal in April due to concerns about potential harm to the cloud gaming market, but discussions are scheduled for July 28th. In the US, a federal judge denied a preliminary injunction from the Federal Trade Commission (FTC), allowing Microsoft to potentially proceed with the acquisition.
- Microsoft has offered licensing agreements for its “Call of Duty” game franchise to competitors such as Nintendo and Sony to address concerns. They recently reached a 10-year agreement with Sony to ensure Call of Duty remains on PlayStation platforms.
In a major industry development, technology giant Microsoft and gaming behemoth Activision Blizzard have announced an extension of their partnership deal. The move cements their strategic alliance for the future, promising a more immersive gaming experience for millions of players worldwide.
The agreement between Microsoft and Activision includes an infusion of cutting-edge technologies from Microsoft’s Azure cloud platform, aimed at revolutionizing online multiplayer gaming and enhancing player engagement. With the power of Azure, Activision intends to optimize game performance, reduce latency, and implement advanced matchmaking capabilities across its popular franchises such as Call of Duty, Overwatch, and World of Warcraft.
Both companies expressed their excitement about the collaboration and the potential it holds for the future of gaming. Phil Spencer, Head of Xbox at Microsoft, stated, “We believe in the power of bringing people together through gaming, and this partnership extension is a reaffirmation of our commitment. By combining Microsoft’s unmatched technology with Activision’s incredible game development capabilities, we are poised to unlock a new era of gaming experiences.”
Activision Blizzard CEO, Bobby Kotick, echoed the sentiment, saying, “We are thrilled to be extending our collaboration with Microsoft. This partnership will enable us to leverage their expertise in cloud computing and deliver next-level experiences to our passionate community of players.”
Moreover, the partnership aims to explore new avenues in cloud gaming, with Microsoft’s Xbox Cloud Gaming (formerly known as Project xCloud) enabling players to stream games directly to their devices without the need for high-spec hardware. This would allow gamers to enjoy their favorite titles on a wide range of devices, including smartphones, tablets, and PCs, thereby expanding the accessibility and reach of Activision’s library.
In addition to technological advancements, the deal extension also emphasizes a commitment to diversity and inclusion in the gaming industry. Both Microsoft and Activision plan to work together to create diverse and inclusive communities for gamers, ensuring that everyone feels welcome and represented in the gaming ecosystem.
As the popularity of gaming continues to surge, this partnership extension between Microsoft and Activision signifies a pivotal moment in the industry. With the integration of Microsoft’s Azure technology, gamers can expect enhanced performance, seamless cross-platform experiences, and the potential for groundbreaking innovations that will shape the future of gaming.