Just days after the United Kingdom's Competition and Markets Authority (CMA) blocked the Microsoft acquisition of Activision Blizzard, Microsoft has made yet another 10-year cloud gaming deal, this time with Nware. The CMA's decision to block the Activision Blizzard acquisition came as a surprise after the company seemed set to clinch the agreement, with several companies showing their support by saying it would not adversely affect the market.
The main sticking point in Microsoft's attempt to acquire Activision Blizzard has been the wildly popular Call of Duty franchise. Sony believes that it would irreparably harm competition if Microsoft were to acquire the Call of Duty franchise. Sony has gone so far as to say that Microsoft could release inferior versions of Call of Duty for the PlayStation so that the Xbox could gain an edge in the console market. Until the CMA made its decision to block it, many believed that the Microsoft acquisition of Activision Blizzard was all but a done deal.
Brad Smith, the vice chairman and president of Microsoft, has announced that the company has struck a 10-year deal with Nware, a European cloud gaming service, that will allow players to stream Xbox games on the platform. The announcement also mentioned that Activision Blizzard titles would be made available "after the acquisition closes," indicating that Microsoft is still confident that the deal will go through despite the fact that the CMA has ruled against it.
The Microsoft president has also said that the CMA's decision marked "a bad day for Britain," lamenting the massive blow to Microsoft's confidence in the British market. Smith called on the UK's Prime Minister and his government to "look hard" at the regulatory body, drawing comparisons between the CMA and EU regulatory bodies with whom Microsoft is attempting to compromise. Xbox head Phil Spencer has reiterated Microsoft's commitment to bringing people more ways to enjoy their favorite games.
Some analysts have weighed in on Microsoft's acquisition of Activision Blizzard after the CMA's decision. Some believe that the deal could be delayed for years or be dead in the water at this point. Others are more optimistic, believing that the CMA might allow concessions and will eventually cave if Microsoft gains the approval from the EU regulators in May 2023, which is when that decision is expected to be announced. Microsoft seems to be staying its course despite the massive blow from the CMA, but it remains to be seen how this will affect the acquisition deal in the long term.