Nvidia – In 2023, Microsoft has been on a roll with its artificial intelligence developments, and it now looks that the company will keep winning.
The tech titan revealed on Tuesday that it will offer Xbox PC games to Nvidia’s cloud gaming service.
The gaming chipmaker, according to rumors, was averse to a large gaming transaction.
The news
The statement came following a meeting between Microsoft President Brad Smith and European Union officials on Tuesday.
His efforts to persuade them that Activision Blizzard’s proposed $69 billion purchase would boost competition dominated the talk.
To avoid the merger being banned, Microsoft pledged reconciliation, therefore growing its gaming industry, which contributes for 9% of total sales.
Despite declining Xbox console sales, Microsoft has invested in expanding its game library and enabling customers to play through Microsoft cloud data centers.
At a press conference, Brad Smith revealed that Xbox titles will be accessible instantly on Nvidia’s GeForce Now cloud game services.
Smith stated that after Activision is acquired, all Activision Blizzard titles would be available on GeForce Now.
Nvidia yields
Microsoft and Nvidia announced a 10-year agreement in a joint statement, putting Nvidia in the same regulatory boat as Microsoft’s proposed acquisition.
According to Bloomberg, Nvidia has expressed reservations about the Activision acquisition to the US Federal Trade Commission.
Jeff Fisher, Nvidia’s senior vice president of GeForce, stated:
“Combining the incredibly rich catalog of Xbox first party games with GeForce Now’s high-performance streaming capabilities will propel cloud gaming into a mainstream offering that appeals to gamers at all levels of interest and experience.”
“Through this partnership, more of the world’s most popular titles will now be available from the cloud with just a click, playable by millions more gamers.”
Microsoft proposed acquiring Activision Blizzard in January 2022, but the acquisition has since been blocked by regulators in the United States, the European Union, and the United Kingdom.
Investigations
According to Brad Smith, the Nvidia arrangement is critical because it allows Microsoft to address a variety of regulatory concerns.
The European Commission launched a thorough inquiry into the purchase in November, raising fears that it might stifle competition in the video game market.
The EU Commission expressed worry last year that if the purchase goes through, Microsoft may limit access to the game on rival platforms.
The commission is also concerned that Microsoft would acquire an unfair edge in cloud gaming.
Subscriptions
Microsoft now offers the Game Pass service, which costs $9.99 a month and gives gamers access to a large number of titles.
Activision’s acquisition would enable them to introduce high-profile games to Game Pass.
Nvidia’s GeForce Now service has over 25 million subscribers.
Microsoft, on the other hand, stated that Game Pass had 25 million customers.
Nvidia provides both free and premium GeForce Now levels, the latter of which provides a greater resolution.
Subscribers to GeForce Now may stream games purchased through Microsoft’s app store, as well as titles purchased from Epic Games and Steam’s app stores, across the cloud.
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The ten-year commitment
When Microsoft acquired Activision, it committed a 10-year commitment to provide Call of Duty to Nintendo.
Many regarded the remark as an attempt to satisfy the suspicions of antitrust regulators.
Additionally, Smith tweeted on Tuesday that the two have inked a formal 10-year legal deal to make Call of Duty available to Nintendo fans on the same day Microsoft’s Xbox was introduced.
The Microsoft CEO also stated that Nintendo and Nvidia purchases benefit game competitiveness.
“I think if you’re a competition regulator and you’re focused on the interests of consumers and competition, today was a good day,” said Smith.
Regulators eye the deal
European authorities aren’t the only ones concerned about the merger; officials in the US and the UK are as well.
The UK’s Competition and Markets Authority stated earlier this month that the merger will only worsen competition issues, leading to higher pricing, fewer options, and less innovation.
The purchase may be blocked, according to the regulator, and Microsoft’s alternatives include divesting the Call of Duty brand.
Smith, on the other hand, contended that selling the Call of Duty game is not a practical need for the company.
“It just isn’t something that seems to be lining up,” said Smith.
“The only reason to sell it off is the CMA’s potential concern that if we buy it, we won’t provide it to others as broadly.”
“I think that concern should be dispelled by the two agreements we’ve signed today.”
FTC involvement
In December, the FTC launched an antitrust complaint against Microsoft in an attempt to halt the Activision acquisition.
Alphabet, Google’s parent company, was clearly upset with the Microsoft acquisition and approached the FTC.
“The European Commission asked for our views in the course of their inquiries into this issue,” said a Google spokesperson.
“We will continue to cooperate in any processes, when requested, to ensure all views are considered.”
Although they did not address the allegations, Alphabet’s concerns were acknowledged by Brad Smith, who stated:
“It’s easy to understand that Google might have questions about whether something like Call of Duty would be available in the future on, say, Chromebooks and the Chrome operating system.”
Image source: Rappler
