Microsoft to Sell Activision Blizzard Streaming Rights to Ubisoft in Revised Deal

So basically the same as what Xbox wanted in the first place (licensing their games to many other cloud streaming services) but instead Ubisoft is in charge of the streaming rights and Xbox Cloud Gaming can't get the games exclusively. Don't have a problem with this at all.

I really don't see how the CMA could object to this.

Well, that’s certainly a twist.

So what happens when Microsoft buy Ubisoft?

@bindiana the masterplan

@Jeaz The deal is only for Activision Blizzard games which Starfield isn't an example of, so no, Starfield won't be getting streamed to PS5 any time soon.

And on the final page of the agreement, that didn't make it to the CMA.

Dear ubisoft, please be aware that all games will be made available day one on Gamepass at no charge and under no surcumstances will you allow any games on playstation.

Ps. This is also true for all ubisoft games going forward.

Thanks for your cooperation. Cheques in the post.

Phill.

Lol, so Xbox users will now need to subscribe to two services if they want to stream all xbox first party games, what a strange move.

I wonder if they did this to hurt sonys sales, now playstation players who aren't bothered about a native version won't need to buy the game but instead subscribe to ubisoft+ and play the game via streaming. Then again is ubisoft streaming such a thing on playstation?

@mightyscampster Restricting games will not happen. Microsoft is a business. It exists to make money. Cutting out the biggest console of the day under the assumption that people will buy XBoxes is foolhardy.

I did not know that ubisoft was a relevant player in the streaming market. ... [ redacted ] ... Weird, MS dictates the price and ubisoft (in addition to MS) can chose which platform is allowed to stream (but not digital distribution) ? Or does this just mean that MS will snack up ubisoft next ?

Also if ubisoft streaming is a thing on playstation then does this mean any future Xbox Activision exclusives will be available on playstation via ubisoft+?

@UltimateOtaku91 no, that isn't what this deal says.

This is only for cloud streaming rights. As far as I can tell, the standard downloadable versions of the games will be available as normal to Xbox users. Therefore, Xbox users shouldn't need two subscriptions.

There is nothing stopping Activision Blizzard games being on Xbox Cloud Streaming. It's just Ubisoft will need to license the cloud versions of the games to Xbox. If they do agree to license games, then Xbox users won't need two subscriptions even for cloud gaming.

And no, I don't believe cloud streaming with Ubisoft is a thing on PS yet. As part of the deal, this does appear to mean that Activision Blizzard can't have any true exclusives on Xbox as the cloud streaming rights can't be exclusive to Xbox Cloud Gaming. However, no games being truly exclusive was kinda the case anyway due to Xbox releasing their games on PC at the same time as Xbox, which would probably continue with Activision Blizzard.

@UltimateOtaku91

You're misinterpreting. Microsoft can obviously also stream acti-blizz out to users. But with this deal they sell the rights for Ubisoft to do the same.

@Jeaz No
This deal only covers ABK games released in next 15 years.
So basically, if ABK will release Call of Duty 2024, rights to streaming of that game belongs to Ubisoft (outside of mainland Europe market). Sony can ask to put that game into PS Plus Premium as a streaming option and Ubisoft will ask for XYZ $ for rights to do it and they will share those revenue with Microsoft as an owner of COD.
But this deal does not cover MGS (multi game subscription). So Sony can't negotiate native version of Call of Duty for PS Plus with Ubisoft but with Microsoft.

It does not cover any XGS or Bethesda game or any ABK games that will be released after 15 years period.

Well now it makes sense why Yves Guillemot said the deal would be good for the industry a few weeks ago. 🤣

Tactically well played to be fair..

They will get their claws and influence in another large software company (another with problems)

Plus, they can basically create a mini version of GamePass on other ecosystems, if they so wish, just under a different moniker...

Be interesting to see how things change (or indeed not) going forward. Currently, Ubisoft+ doesn't/cannot stream on PS Plus, so as it stands it's a moot point, but an interesting development I guess.

It’s a good ‘political’ compromise. It’s allows CMA to save face and reinforces what MS have been saying -
publicly at least.

So that explains why Ubisoft games are starting to be removed from PS+ Extra/Premium.

@SJR Haha 😂 you are thinking exactly the same as me. 👏🏻👏🏻

@UltimateOtaku91 Ehh. Nope?
Microsoft will have those rights, but also Ubisoft. So ABK games will be on xCloud. Sony can license them from Ubisoft, but it only covers streaming, not native versions. Those will be owned still by Microsoft. So if Sony wants COD native for PS Plus, they need to go through Microsoft.

Maybe I'm not fully understanding of the new deal, but an unintended consequence of this is that it will push more consumers into streaming games, as physical and digital copies of some ActiBlizz games will not be available on PS for instance. This means that Microsoft will be capturing a portion of the PS base that is interested in streaming but hasn't made the jump yet.

So I guess this means Microsoft cannot buy ubisoft now? Otherwise it negates this deal?

Interested in seeing the terms of that deal. Generally self regulation via behind the scenes deals is just a way to stop regulators doing it themselves in a way that is far less beneficial.

Does it only cover streaming, or also adding to subscription services? And what happens after the somewhat irrelevant 15 year duration? Does MS then get the rights back to do with whatever they wish?

Microsoft gains influence with another major publisher and still get what they want.

This deal is going through.

Tbh... I don't see Ubisoft+ being around for 15 years

What happen when Microsoft buys Ubisoft lol.

@tameshiyaku Even if it isn't around, there are still plenty of other cloud streaming services that Ubisoft can license this content to (especially when you consider that Ubisoft+ doesn't have its own streaming service and just uses Amazon Luna).

@thefourfoldroot1 cloud streaming only for Activision Blizzard PC and console games released over the next 15 years will be given to Ubisoft - with those rights then existing in perpetuity.

In other words, if Microsoft owns Activision then the next 15 years of Call of Duty games will forever be streamable via Ubisoft's cloud services

@UltimateOtaku91 Ubisoft + is currently not on Playstation, only Ubisoft Classics.

Ubisoft + including streaming is currently £14.99 per month for those wondering, almost the same price as Gamepass Ultimate

What happens after 15 years? They consolidate all their power or they make more unfavorable deals to keep ABK content where it already was before this "gaming for all" acquisition. No thanks. Hopefully, the CMA isn't fooled.

I still don't like any of this. I am not even sure if this is even better. Plus what would stop ms from buying ubisoft in 10 years?

And it's no secret that Ubisoft "will consider offers to be bought". Who wants to bet that Microsoft will buy them as soon as the ink dries on ABK? Thus getting all the "streaming rights" under their own control. Never trust them.

@GADG3Tx87 True. We can all see the writing on the wall over this one.

@TheCollector316 I wouldn't hold much hope. It's practically certain that those concessions are made with CMA's guidence and something that will be 100% acceptable for them. ABK stocks event went up after today's announcement.

Only other possibility is that CMA is trolling Microsoft hard. They decided to have a deadline for Phase 1 on 18th October. Same day as merger agreement will expire and then they will say "we are moving it to Phase 2." But I doubt that...

@Godot25 oooooohhhhhhh………. That would be spicy!!!

So Microsoft to buy Ubisoft in the next few years then I assume. It’s mad how people can’t see the consolidation happening right in front of their eyes.

I feel pity for AB, they were once among the giants. Now they allow others to decide for them. What if one day MS buys ubi? Their appetite is endless as their pockets

I found a snippet from a press release about the revised deal that paints a bit of a darker picture: "Alas! I had turned loose into the world a depraved wretch, whose delight was in carnage and misery”

No, wait, that’s about the original Frankenstein, not this new monster.

@XboxTheBestBox it makes sense and I would hope that they do a deal like bungies and allow to do multi format, otherwise I could see sony cutting their output down as it would compete too much with their own first party games in similar genres. I know people moan about annual releases, but at least there is always an option to play with ubisoft

I’m so past the point of caring now. Consolidation across the industry is out of control, at this point we’re just watching money change hands at the highest echelons of the ruling class while the very worst people in the world make a racket.

@SgtTruth this isn't necessarily true.

Ubisoft has the rights to license out the cloud versions of Activision Blizzard games to other services, including Xbox Cloud Streaming with Game Pass.

There is nothing to say that the games won't be on Game Pass Cloud Streaming. They just can't be exclusive to it.

They have already said they will be licensing out the cloud games to other services so they won't be exclusive to Ubisoft+.

@Sakai
Thanks, I’ve since read that, don’t know why the details weren’t given here. Not that I’m perpetuity matters much for annual games I guess, and especially doesn’t matter when the service isn’t on PlayStation and we don’t know the agreement made with Ubisoft that could stop it coming to PlayStation…so bit of a non story for this site I guess (edit: heard Zuni might put it through Ubisoft+classics on PS, which would be good).

Now hopefully it will be available for download and not just streamed. Not for me, I don’t play it, but for those who might otherwise not get a PS.

@SgtTruth That’s not what this is. These games will be on Game Pass, there was never an issue with that. The issue was with the cloud versions, so being able to stream the games through a tablet or a TV without installing them. You will still be able to do that through Game Pass, but now that can be done through Ubisoft+ too, meaning the cloud versions are not exclusives that need a Game Pass sub, which is what the CMA claimed to be concerned about.

Ok. This all looks fishy. Suddenly another subject in, only some promise without paper, still only about cloud gaming that no one cares about... this all is dirty, pretty dirty move with dagger behind curtain...

@djlard it's about cloud gaming because that is what the CMA cared about.

Wow. Isn’t the game industry fun! So glad we all spend hours trying to decrypt corporate contracts and mergers than we do playing games! It’s all about as fun as the average Ubisoft game so I guess it’s appropriate after all.

Well, this is most likely going to go through. It would be funny if the CMA ixnayed this as well, just to mess with MS.

All this fuss over something nobody wants to do, cloud stream a game.

It's funny how the CMA is hung up on the cloud issue and MS literally cannot care less about the cloud streaming side of this deal.

@thefourfoldroot1 I believe this agreement is for streaming only, and wont include downloadable versions, as the cloud market was the CMAs only concern during their investigation. Sony already signed a 10year deal with Microsoft for native versions of COD. The next logical step would be to release Ubisoft + on other platforms, and not just PC and Xbox

@XboxTheBestBox I doubt Sony responds with an acquisition of their own and they don't really need to. Sony is in a great spot and this ABK doesn't really move the needle that much in the console space.

Sony and MS will make more acquisitions but it will be more of what makes sense for them and not about responding to what the other has purchased. For example sony is probably looking harder at mobile developers and support studios instead of AAA devs because that is what they need right now.

Wait, so CMA reblocked the deal today? Meaning Microsoft sold the rights to Ubisoft in the matter of a few hours?

@LifeGirl Microsoft has been fined several times in Europe for bad practices with competition so I don't trust them one bit. To be fair all US based companies try to kill of the competition with nasty practices.

Ah, so 1-2 years from now, Ubisoft will be Microsoft's next purchase, yes?

@TheLotteryMan1 no they did not reblock the deal and no they are not selling off the full rights to the games. Microsoft has been floating the possibility of divesting the cloud streaming side to someone else for awhile now. We are learning that ubisoft will take that role for the next 15 years. Ubisoft+ will have the games for streaming only and they can contract the streaming rights to other services too (xbox will still be paid for each game by ubisoft and other services).

Not much changes on the console side. The games will still be developed under the Xbox umbrella and will be available on gamepass at some point. They will still honor the Nintendo and playstation contracts. If there is a spyro, or other abk game exclusive to Xbox in those 15 years then ps users might be able to stream it with a ubisoft+ sub at some point.

@XboxTheBestBox kinda hard to not take you for a fanboy with a name like that. But no worries.

I actually disagree about the cloud gaming issue. I think the cloud issue is not overblown like many think. This is a real industry, and it's in its infancy right now. At this stage, an early lead can hold for several generation.

This is a good move on Microsoft's side to establish good faith, but a 15 year deal is the same as a 10 year deal for games with Sony. We won't know the full long term effects until it's too late.

@UltimateOtaku91 Not really, this doesn’t seem to affect customers in the slightest, Game Pass subscribers will be able to download or stream ABK games, the only difference is that Microsoft will have to get the license through Ubisoft, making sure that Xbox Cloud Gaming isn’t the only streaming platform to have those games.

So this also opens the door for someone like Sony to get the rights to stream all ABK games in PS Plus Premium through Ubisoft.

@IOI Ah I see, so if for example sony did want to stream Activision games via playstation plus premium then it would be soley down to Ubisoft with Microsoft having no say in the matter? Also any money sony would pay for that ability who would it go to Ubisoft or Microsoft.

@UltimateOtaku91 From the Eurogamer article:

Ubisoft will be able to license the games to a range of other cloud gaming and subscription services, and pay Microsoft for the rights to each title via a "one-off payment" and "an option that supports pricing based on usage".

So not only will Microsoft get all the money from ABK sales and MTX, Microsoft will also get money by selling streaming services rights to Ubisoft.

Boy, the money will just keep on rolling in.

@UltimateOtaku91 Exactly, all cloud licensing would have to be done through Ubisoft and Microsoft wouldn’t have a say in any of this deals (but of course they would get paid as they’re still the owners of the games, just not the streaming rights).

Bah, just get it over with so we don't have to hear about it anymore...

@lightningbolt79 It is interesting to see how CMA is baking this acquisition on least important thing.

@XboxTheBestBox 2%, you say. What do you estimate the percentage will be in 10 or 20 years?

Don't be so short sighted. Microsoft is playing the long game here.

Physical to digital to streaming. That's the obvious path. It doesn't matter if it takes 100 years. Corporations think in decades. And that's why this Ubisoft deal is as naive as the 10-year COD Sony deal.

Microsoft is totally doing the winner takes all move, mobile gaming included. And it won't be the first time they employ this nefarious strategy.

I see dark times ahead in gaming. We're happily following the train wreck that's been Hollywood and rock music.

@Art_Vandelay
Exactly right. People are either incredibly shortsighted or wilfully ignorant.

Dumb thought but does this mean Starfield and the like could well be playable on PlayStation… cloud streamed from an xbox or pc server?

@Art_Vandelay stop being so dramatic. Your precious Sony will continue on and make great games. It’s like you want all gaming companies to fail except for Sony. Why is that. Sony has the Apple effect on gaming.

@PlayStationGamer3919 Uh rayman, splinter cell and prince of Persia are dead franchises, they have ghost recon and rainbow six and the division

@SgtTruth Cerny? What does Cerny have to do with any of this? He's the lead architect. Are you getting him mixed up with Jim Ryan?

@PlayStationGamer3919 Have you seen the reaction to that game though? People hate it and how can it be prince of Persia when the character you play as isn't even the prince of Persia or whoever they had people play as all the other times, it's a doa same as gollum

Well all ways known that one day Microsoft x box would put an end to video games.

@PlayStationGamer3919 it's prince of Persia in name only, the general consensus is bleak for it

@cburg Then why don't I have a problem with Nintendo?

Because they simply do their thing, which is essentially making high quality games.

A healthy games industry should have a few platform holders competing, and that's exactly why I have a problem with Microsoft's strategy. Because it's "spend them out of business" predatory. And you know that.

Sony is not winning because their strategy is to destroy competitors. They're winning because Microsoft is a productivity software company first and foremost, who don't seem to be able to put out good games with consistency. So they use their financial might to buy creativity and enforce an unsustainable business model in a search for monopoly.

@XboxTheBestBox I feel I really shouldn't have to state the obvious, but here we go: it's nefarious to leverage financial advantage and employ anticompetitive tactics in order to create a monopoly.