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Microsoft wins Nvidia support for embattled Activision deal
Microsoft Corp. announced an agreement to offer its games to Nvidia Corp.’s GeForce Now service as part of its efforts to demonstrate that the sector will stay competitive if it is permitted to purchase Activision Blizzard Inc. for $69 billion.
After meeting with European Union authorities in Brussels on Tuesday, Microsoft CEO Brad Smith revealed the Nvidia agreement. According to a joint statement, the cooperation “resolves Nvidia’s worries” regarding the transaction. “As a result, Nvidia is providing its full support for regulatory clearance of the purchase,” they stated.
The software behemoth is attempting to preserve the doomed merger, which is facing regulatory obstacles both at home and overseas. Although Europe investigates the deal, the US Federal Trade Commission has already filed a lawsuit to stop it.
Microsoft has been attempting to form alliances with other gaming businesses in order to demonstrate that its titles would remain freely available following the Activision purchase. Opponents of the deal are afraid that the firm may restrict game availability or favour its Xbox system and cloud-gaming service. Microsoft has agreed to a 10-year agreement with Nintendo Co. to bring Activision’s Call of Duty on Nintendo’s gaming platform.
The Nvidia agreement calls for the firms to start working on making Microsoft’s Xbox titles available for streaming via GeForce Now. According to the release, this will ultimately include Call of Duty.
According to Phil Eisler, the president of GeForce Now, Nvidia was initially concerned that the combination might limit the availability of games on streaming services. The corporation is now a supporter of the agreement, believing that it would alter Nvidia’s service and boost streaming in general.
“We became a strong backer of the agreement,” he stated. “It’ll be life-changing.”