Microsoft's $69 Billion Activision Deal in 2025 Gets Nvidia and Nintendo's 10-Year 'Call of Duty' Access
Microsoft secures a landmark agreement with Nvidia and Nintendo, ensuring a decade of equal access to Activision Blizzard’s 'Call of Duty' franchise, aiming to satisfy U.S. and European regulators amid its $69 billion acquisition bid.
If approved, this merger would become the largest in tech industry history.
In a strategic move to ease regulatory concerns, Microsoft (MSFT) has finalized a 10-year agreement with Nvidia (NVDA) and Nintendo (NTDOY), granting them access to the iconic "Call of Duty" franchise. This deal is part of Microsoft's ongoing efforts to convince U.S. and European antitrust authorities that the gaming market will remain competitive following its proposed $69 billion acquisition of Activision Blizzard (ATVI).
Under this agreement, "Call of Duty" alongside other popular Activision and Xbox titles will be available on Nintendo platforms and Nvidia’s cloud gaming service, GeForce Now, immediately upon the completion of the acquisition. This ensures that Microsoft-published games remain accessible to competitors, promoting a fair gaming ecosystem.
Important Highlights
- Microsoft guarantees Nvidia and Nintendo access to the "Call of Duty" franchise for the next 10 years.
- Regulators in the EU and U.S. have expressed concerns that the acquisition might stifle competition; the FTC filed a lawsuit to block the deal in December 2023.
- Nvidia representatives have expressed that this new agreement alleviates their concerns regarding the acquisition's impact.
This deal represents Microsoft's latest and most significant public relations effort to secure regulatory approval for what would be the biggest tech acquisition ever. The U.S. Federal Trade Commission (FTC) argues that without intervention, Microsoft could undermine competition in high-performance gaming consoles and subscription services by limiting rivals' access to key content.
Similarly, the UK's competition authorities have suggested that Microsoft might need to divest the "Call of Duty" franchise to maintain a competitive market. European antitrust officials recently held closed-door discussions with Microsoft President Brad Smith and representatives from competitors Sony and Google, with a regulatory decision expected by April 11, 2024.
Phil Eisler, Vice President of Nvidia’s GeForce Now, shared, "Initially, we had concerns, but after engaging directly with Microsoft, their commitment to supporting cloud gaming through a 10-year licensing agreement made us increasingly confident in the deal’s fairness."
Meanwhile, Sony, Microsoft’s chief rival in the gaming console space, continues to lobby regulators to block the acquisition, emphasizing the potential risks to competition.
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