Microsoft Enters Nvidia Deal To Soothe Regulator Concerns

essidsolutions

Even as regulatory bodies are closely examining Microsoft’s pending acquisition of Activision Blizzard, the US-based tech giant is pushing to gain the support of key players in the sector. The company is now entering an agreement with Nvidia to provide support in the Activision deal.

The agreement between Nvidia and Microsoft will create a 10-year-long deal, allowing Xbox PC games into Nvidia’s cloud gaming service GeForce Now. The move is said to allow an easier user access to the games on any device type, including smartphones, PCs, Chromebooks, and those run on macOS. The deal will also include Activision Blizzard games after the acquisition is completed.

Jeff Fisher, Senior Vice President for GeForce, spoke about the dealOpens a new window : 

“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.”

See More: Dell To Cut 5% of Its Staff After Underwhelming PC Sales in 2022

EU Commission Concerned Over Anti-competition Developments From Exclusive Offerings

The Nvidia-Microsoft deal is a part of the continuing attempt to convince regulators that Microsoft does not intend to use an anti-competition approach with the acquisition of Activision, particularly regarding the highly popular Call of Duty franchise.

The EU Commission, in particular, is concerned at this point that the Activision deal will reduce competition and that Microsoft will make some of the big-banner games, such as Call of Duty, exclusive to Microsoft platforms.

Microsoft, on the other hand, has been a relatively smaller player in the sector so far, with Sony and Nintendo ruling the roost. The company could argue that the deal would boost competition.

However, the deal with Nvidia may not be enough as regulators have no guarantee that Microsoft will not gain an unduly dominant position in the gaming industry after the 10-year period has passed, potentially allowing it to crush any competition.

Let us know if you enjoyed reading this news on LinkedInOpens a new window , TwitterOpens a new window , or FacebookOpens a new window . We would love to hear from you!

MORE ON TECHNOLOGY