news/ATVI/2023.02.21/Microsoft inks Nvidia game deal to assuage regulators over Activision merger.txt

BRUSSELS, Feb 21 (Reuters) - Microsoft Corp has
struck a 10-year deal to bring "Call of Duty" and other
Activision games to Nvidia Corp's gaming
platform if the Xbox maker is allowed to complete its
much-contested $69 billion acquisition of Activision.Regulators and competitors like Sony have come out hard
against the proposed Microsoft-Activision tie-up. The move may
allay concerns by ensuring more ways for consumers to get games
controlled by Microsoft, but regulators around the world have
been skeptical about the acquisition.Britain earlier this month said the deal could harm gamers
by weakening the rivalry between Xbox and PlayStation, resulting
in higher prices, fewer choices and less innovation for millions
of players, as well as stifling competition in cloud gaming.Microsoft President Brad Smith told a news conference on
Tuesday he was now more optimistic of getting the Activision
acquisition done after the Nvidia deal and a similar arrangement
with Nintendo Co Ltd.Phil Eisler, vice president and general manager of Nvidia's
GeForce Now segment, said that titles such that "Call of Duty"
will not be available on Nvidia's service unless Microsoft
acquires Activision but that other Microsoft-owned titles such
as "Minecraft" are covered immediately under the 10-year license
agreement."We were a little concerned about it at the beginning,"
Eisler said of the Microsoft-Activision deal. "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."Eisler said Nvidia is not paying Microsoft for access to the
titles, which is the same arrangement the company has with other
gaming companies such as "Fortnite" maker Epic Games. Instead,
Nvidia's 25 million customers will need to pay Nvidia for access
to its cloud gaming platform and pay Microsoft for its games.Shares of Microsoft fell 2%, Nvidia dropped 3.4% and
Activision fell 0.7% in a broadly lower market on Tuesday
afternoon.Nvidia said it now supports the Xbox maker's bid to purchase
Activision, but the deal could still be a hard sell with
regulators. European officials issued Microsoft a warning about
the deal earlier this month, while the U.S. Federal Trade
Commission has asked a judge to block it. The British
competition watchdog has said Microsoft may have to divest "Call
of Duty."Smith said he hoped that rival Sony Group Corp will
consider doing the same type of deal with Nvidia.Sony has led opposition to the Microsoft-Activision deal,
saying last year it was "bad for competition, bad for the gaming
industry and bad for gamers themselves."Apart from Sony and Nvidia, other companies including
Alphabet Inc's Google had expressed concerns to the
FTC about the deal, according to media reports.Microsoft has pledged to keep "Call of Duty" on Sony's
PlayStation. The popularity of the first-person shooter
franchise is undimmed nearly two decades after launch, with the
latest installment achieving $1 billion sales in its first 10
days in October.The U.S. tech giant has said the deal is about more than
"Call of Duty." It has said buying the company that also makes
"Overwatch" and "Candy Crush" would charge its growth in mobile,
PC, and cloud gaming, as well as consoles, helping it compete
with the likes of Tencent as well as Sony.(Reporting by Foo Yun Chee in Brussels and Stephen Nellis in
San Francisco; Editing by Peter Henderson, Matthew Lewis and
Bradley Perrett)