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Microsoft sign another cloud deal in Europe, just days after UK block

Published: 07:42, 28 April 2023
Microsoft have signed a 10-year deal with Spanish cloud gaming provider Nware
Microsoft have signed a 10-year deal with Spanish cloud gaming provider Nware

Just a couple of days after UK's competition regulator blocked the Activision Blizzard deal over cloud concerns, Microsoft have signed another 10-year deal with a European cloud gaming provider. 

Microsoft are continuing to sign more cloud deals in Europe even though their acquisition of Activision Blizzard is covered in a veil of uncertainty now that UK's competition regulatory body have officially said they are preventing this deal from happening.

Today, Microsoft announced that they have signed another ten-year deal, this time with Spanish cloud gaming provider Nware. In the official statement, Microsoft say Nware users will be able to stream PC games built by Xbox as well as Activision Blizzard titles once the acquisition closes.

"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," it's written in the statement shared by Microsoft president Brad Smith.

The UK regulator blocked the acquisition over cloud gaming concerns, stating that Microsoft are already the strongest competitor in the cloud space and the acquisition would only strengthen that position if Microsoft offered Activision Blizzard games like Call of Duty , Diablo 4 and others via the cloud.

With this latest and previous deals, Microsoft are trying to ease those concerns before appealing the CMA decision, which will be reviewed by a different body.

Klobrille Japan Fair Trade Commision have stated that the Microsoft's proposed acquisition of Activision Blizzard will not limit the competition If they acquire Activision Blizzard, Microsoft will own Call of Duty, Crash and every other Activision Blizzard IP

And while the decision from the UK is not final as Microsoft are still hoping for a different outcome, the block is a major blow for the American tech giant who expected to close this deal by June 2023.

Microsoft will now hope that the European, Australian and Chinese regulators allow the deal, otherwise, it will be an uphill battle that Microsoft may end up walking away from.


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