Microsoft continues to push for Activision’s deal with another 10-year cloud gaming agreement

Microsoft has signed another 10-year cloud gaming deal in a move that appears to be part of Xbox’s efforts to convince regulators that the proposed deal to buy Activision Blizzard should go through. Microsoft and UK mobile network EE have announced a “10-year commitment” to cloud gaming to bring Activision Blizzard’s PC games to EE customers.

“We’re committed to bringing more games to more people, no matter how they choose to play,” Microsoft Gaming CEO Phil Spencer said on Twitter. Meanwhile, EE CEO Marc Alera said EE is “thrilled” to work with Microsoft to help make EE “the number one destination for gamers…”

Microsoft’s announcement of a 10-year deal with EE — which follows similar decade-long agreements with Boosteroid, Ubitus and GeForce Now — appears to be part of Microsoft’s effort to appease regulators about one of its main concerns. The UK Competition and Markets Authority has provisionally concluded that Microsoft’s proposed deal to buy Activision Blizzard will not limit competition in the UK. Control unit space, but CMA is still worried about clouds the shop. Microsoft’s announcement of these deals with major UK players in the cloud space seems to be connected to all of this. However, it remains to be seen whether or not this is enough to seal the deal. And even if the acquisition clears regulatory hurdles in the UK (the deadline is April 26), Microsoft still needs to convince the US government to agree to the deal.

Sony Interactive Entertainment has been a vocal opponent of Microsoft’s proposed deal to buy Activision Blizzard, in part because of Sony’s assertion that Microsoft can make Call of Duty an Xbox exclusive. For what it’s worth, Microsoft executives have repeatedly said they wouldn’t. In any case, the SIE recently said the CMA’s initial conclusion that Microsoft’s deal to buy Activision Blizzard wouldn’t curb competition in the console space, after originally saying it would be “surprising, unprecedented, and irrational.”

Cloud gaming is a component of Microsoft’s gaming strategy going forward. All Xbox Game Pass Ultimate members have access to Xbox Cloud Gaming, a service that allows members to play Game Pass titles and more via streaming. Members can stream games to their phones or tablets, or even an old Xbox. One of the advantages of cloud gaming is the ability to launch a game almost instantly because it does not require a local download. Players need a strong and consistent internet connection for the best experience. Microsoft said that cloud gaming would be only one part of Xbox’s overall value proposition, as cloud gaming was not seen as an offering that would replace discs and downloads, but rather complement existing offerings.

In addition to cloud gaming, Microsoft and Nintendo have signed a 10-year agreement to bring Call of Duty games to Nintendo platforms like Switch. Microsoft has reportedly offered a similar 10-year deal to Sony, but the company has yet to agree or formally respond.