Wednesday, February 22, 2023

Microsoft Signed Deal For 10 Years With Nvidia Corp.

By Jitendra Indave On Wednesday, February 22, 2023

Microsoft Corp has secured a 10-year agreement to bring Activision games to Nvidia Corp's gaming platform, subject to the completion of its contested $69 billion acquisition of Activision.

However, the proposed Microsoft-Activision deal has faced opposition from regulators and competitors such as Sony. The UK government recently warned that the deal could harm gamers by reducing competition between Xbox and PlayStation, resulting in fewer options, higher prices, and less innovation for players. It could also stifle competition in cloud gaming.

To address these concerns, a possible solution could be a deal with Nvidia, which would provide more ways for consumers to access games under Microsoft's control.

The deal with Nvidia could potentially address the concerns raised by regulators and competitors over Microsoft's proposed acquisition of Activision. This is because the agreement would provide more options for consumers to access games controlled by Microsoft.

During a news conference on Tuesday, Microsoft President Brad Smith expressed greater optimism about the Activision acquisition, following the Nvidia licensing deal and a similar arrangement with Nintendo Co Ltd.

According to Phil Eisler, Vice President and General Manager of Nvidia's GeForce Now segment, games like "Call of Duty" will not be immediately available on Nvidia's service until Microsoft completes its acquisition of Activision. However, other Microsoft-owned titles, such as "Minecraft," are already covered under the 10-year license agreement.

Initially, Nvidia had concerns about the proposed Microsoft-Activision deal. However, after reaching out to Microsoft, they were assured that the company was committed to promoting cloud gaming and willing to work with Nvidia on a 10-year license agreement. As a result, Nvidia became increasingly comfortable with the deal over time. Phil Eisler, Vice President and General Manager of Nvidia's GeForce Now segment, stated, "We were a little concerned about it at the beginning. But then we reached out to Microsoft, and they were very open about wanting to enable cloud gaming and work with us on a 10-year license agreement. So over time, they made us more and more comfortable with it."

Nvidia has expressed its support for Microsoft's proposed acquisition of Activision. This comes after European officials issued a warning about the deal earlier this month, while the US Federal Trade Commission has requested a judge to block it. The UK competition watchdog has also suggested that Microsoft may need to divest from "Call of Duty."

According to a press statement from Nvidia, the company has entered into a 10-year agreement with Microsoft to begin integrating Xbox games into its GeForce Now streaming games service immediately. The service already has 25 million users across more than 100 countries.

Microsoft President Brad Smith expressed his hope that Sony Group Corp, a major competitor, will consider a similar deal with Nvidia. It remains to be seen how these developments will affect the ongoing controversy surrounding the Microsoft-Activision acquisition.


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