EU approves Microsoft's acquisition of Activision Blizzard - What the decision means for the cloud gaming market

15 May 2023 / by Fabian Roßbach
EU approves Microsoft's acquisition of Activision Blizzard - What the decision means for the cloud gaming market

The European Commission gives green light

It's official: The European Commission has approved Microsoft's acquisition of Activision Blizzard worth $68.7 billion. Despite concerns about the impact on the emerging cloud gaming market, Microsoft was able to convince the EU Commission with concessions. This includes a free license for European gamers to stream Activision Blizzard games through any cloud gaming service of their choice, and a free license for cloud gaming providers in the region to host these games on their platform.

The EU's approval comes despite the blockage of the deal by the UK Competition and Markets Authority (CMA) last month. The CMA criticized the EU's decision and warned that Microsoft could dominate the cloud gaming market for the next decade. Microsoft must now appeal against this decision.

Positive impact on the cloud gaming market?

The European Commission sees Microsoft's acquisition of Activision Blizzard as an opportunity to promote growth in the cloud gaming market, despite concerns. With concessions such as free licenses for European gamers and cloud gaming providers, Microsoft is willing to maintain competition in the market and continue to enable fair access to games and platforms.

What does the acquisition mean for gamers?

For gamers in Europe, the approval of the acquisition by the EU means they can stream Activision Blizzard games through any cloud gaming service of their choice - at no additional cost. This opens up new possibilities and offers more freedom in choosing their preferred cloud gaming provider.

Further hurdles for Microsoft

Although the EU approval is an important step, Microsoft still faces further challenges to complete the acquisition. The US Federal Trade Commission (FTC) must also give its approval. If the FTC gives the green light, Microsoft will further expand its presence in the gaming industry and benefit from a strong portfolio of games, including popular titles such as Call of Duty, World of Warcraft, and Overwatch.

Outlook on the future of cloud gaming and Windows 11

Microsoft's acquisition of Activision Blizzard could also have implications for the Microsoft Windows 11 Home operating system. It is possible that future updates and features of Windows 11 will be more focused on cloud gaming to facilitate the integration of Activision Blizzard games and other cloud gaming offerings.

Conclusion: An exciting year for Microsoft and gamers

The EU approval is an important step for Microsoft's acquisition of Activision Blizzard - despite the blockade by the UK CMA. With the prospect of a strengthened presence in the gaming industry and possible implications for Windows 11, we have an exciting year ahead. It remains to be seen how the cloud gaming market will develop and what other surprises Microsoft has in store for gamers.

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