Microsoft plans to sell off Activision Blizzard cloud gaming rights to Ubisoft

24 Jun 2022
3,982
6,954
Short Term Outlook:

Yes, seems that Chris and Jim already knew back then what were the full MS/ABK plans including this Ubisoft bit. We now finally know what he meant with this sentence. Obviously this deal will benefit Ubisoft's service.



Ubisoft is the biggest European publisher / game company, but in the worldwide arena only ABK, EA,Take 2, Bandai Namco and maybe 1 or 2 more are above Ubisoft regarding console.

Out of the main 3P competitors of Ubisoft, the biggest one (ABK), won't be 3P anymore, meaning Ubisoft climbs a position on the ranking of most important 3P console publishers. And on top of that, now on their subscription they'll have the ABK games too.

Long Term Outlook:

Why only 15 years? Shouldn't it be indefinite?

Also, Ubisoft is one of the companies MS was looking into. Wouldn't surprise me they buy them and default the right back to them.

And again, this is not a big deal. MS still gets the IPs, still gets to impose their rules on console games and still gets a cut from Ubisoft.

If the CMA truly wanted to do something, they;d request full divestiture of Activision/Blizzard and let MS keep their mobile games like they said they wanted. But, the CMA always had issues with cloud gaming only, so I can't really blame them from going with this.

IJS...
 

Zzero

Major Tom
9 Jan 2023
4,005
2,333
Ubisoft should license the tech to make Just Dance peripherals. Thats all it was ever good for anyway.

edit: wtf, this was supposed to be in the Kinnect thread
 
Last edited:

Yurinka

Veteran
VIP
21 Jun 2022
7,778
6,665
Short Term Outlook:



Long Term Outlook:



IJS...
Microsoft said that Ubisoft bought the cloud gaming rights IN PERPETUITY of all Activision Blizzard games published before 2039, while also honoring any previous cloud gaming related deal that MS/ABK did (all these '10 years' deals).

Meaning, tomorrow Ubisoft could license all AB games published until 2039 to be available who knows if day one in cloud gaming platforms owned by Sony, Nintendo, Apple, Google, etc. and keep there forever if Ubi wants because they bought these rights.

It means Ubisoft will have forever the cloud gaming rights of the AB games released before 2039 and MS will have the cloud gaming rights of the AB games published in 2039 and later.
 
  • Like
Reactions: Ezekiel

Yurinka

Veteran
VIP
21 Jun 2022
7,778
6,665
I wonder how the financials of this works. Is Ubisoft getting the entire income stream from the games being on the cloud?
MS says in the press release :

"The agreement provides Ubisoft with a unique opportunity to commercialize the distribution of games via cloud streaming. The agreement will enable Ubisoft to innovate and encourage different business models in the licensing and pricing of these games on cloud streaming services worldwide. Ubisoft will compensate Microsoft for the cloud streaming rights to Activision Blizzard’s games through a one-off payment and through a market-based wholesale pricing mechanism, including an option that supports pricing based on usage. It will also give Ubisoft the opportunity to offer Activision Blizzard’s games to cloud gaming services running non-Windows operating systems."
 
  • Informative
Reactions: anonpuffs

AllBizness

Veteran
22 Jul 2023
1,339
1,309
Some people are acting exactly like that in the Era thread. They really just want game taken away from PlayStation.
Yep, and I think that thread has slowed down tremendously as people start to realize Xbox wont have any notable Activision exclusives for a while. Even when next gen starts COD will be on PS6 still and the next Diablo probably wont be out until PS7 lol.
 
  • haha
Reactions: JAHGamer
27 Jun 2023
5,368
4,258
29
United kingdom
Yeah i can't imagine the pathetic weasels in the EU being very happy now.

They've been forced to look at this merger again because the CMA forced microsofts hand.
Fuck them you can see how much they just want to take bribes by who they were ready to employ someone that's worked for Microsoft, is a US citizen & has no European citizenship 🤣
 
  • Like
Reactions: JAHGamer
24 Jun 2022
3,982
6,954
Microsoft said that Ubisoft bought the cloud gaming rights IN PERPETUITY of all Activision Blizzard games published before 2039, while also honoring any previous cloud gaming related deal that MS/ABK did (all these '10 years' deals).

Meaning, tomorrow Ubisoft could license all AB games published until 2039 to be available who knows if day one in cloud gaming platforms owned by Sony, Nintendo, Apple, Google, etc. and keep there forever if Ubi wants because they bought these rights.

It means Ubisoft will have forever the cloud gaming rights of the AB games released before 2039 and MS will have the cloud gaming rights of the AB games published in 2039 and later.

Here's what you're missing: cloud availability for these games means very little to the active market because there is a hard cap on the number of gamers interested in cloud. Certain cloud services, like Sony's are also married to their game subscription service. In theory they can put cloud versions of these games in their service Day 1 via licensing agreements with Ubisoft, but that would negatively impact B2P sales revenue, potentially.

It's similar in way why MS throwing around an offer for COD Day 1 in services like PS+ was never really on the table for Sony: subscription services have slowed down in sub growth and have a hard cap limit, while putting big games like COD in such a service Day 1 is potentially negative impact to the B2P sales revenue of that game on the console and could have a trickle-down negative effect on B2P sales of other games on the system.

Who has the rights to the cloud streaming versions of COD or other ABK games really means little to companies like Sony or, going by trends in the market, most gamers, in terms of having a positive impact on them (revenue growth in Sony's case, player habits in the customer's case).
 
  • Like
Reactions: Would_you_kindly

anonpuffs

Veteran
Icon Extra
29 Nov 2022
10,497
11,938
MS says in the press release :

"The agreement provides Ubisoft with a unique opportunity to commercialize the distribution of games via cloud streaming. The agreement will enable Ubisoft to innovate and encourage different business models in the licensing and pricing of these games on cloud streaming services worldwide. Ubisoft will compensate Microsoft for the cloud streaming rights to Activision Blizzard’s games through a one-off payment and through a market-based wholesale pricing mechanism, including an option that supports pricing based on usage. It will also give Ubisoft the opportunity to offer Activision Blizzard’s games to cloud gaming services running non-Windows operating
Interesting. Market based wholesale sounds like if Ubisoft wants to make Actiblizz titles available via cloud streaming they need to become a retail storefront wherein they buy licenses to redistribute on their cloud service. That doesn't seem like it provides very many advantages to ubisoft.
 

PriorPancake

Member
4 Aug 2023
37
28
Gotta love how the CMA thought they accomplished something while in fact that doesn't change a thing about native versions (Call of Duty being the exception because of the Sony deal).
 
Last edited:

Dr Bass

The doctor is in
Founder
20 Jun 2022
2,042
3,450
The deal is so watered down as to be useless. MS will essentially be flushing 70 bil down the toilet. Does anyone think any of this stuff will matter in 2039?
 
24 Jun 2022
3,982
6,954
The deal is so watered down as to be useless. MS will essentially be flushing 70 bil down the toilet. Does anyone think any of this stuff will matter in 2039?

That's a good question. TBF, did anyone think GTA would be such a cultural heavyweight after the PS2 generation? IIRC GTA4 had a more muted response compared to previous entries.

Then GTA5 turned all of that around and then some. The IP's bigger than it's ever been. GTA6 could continue that or have a somewhat more muted response a la GTA4, who knows yet. I think COD is at a point where it's just always going to sell no matter what. Even if the baseline drops to 10 million per new entry, that's still 10 million a year on top of all the MTX/DLC money and Warzone money.

I guess MS are looking at that long-term and figure it's worth $69 billion over that. Even if it's overvalued, MS aren't really hurting for cash; they make enough in company profits & revenue to get that money back in a year in pure profits, and their market revenue & valuation ensures they won't hurt for spending $69 billion on ABK.

You'd think that alone would have given regulators more pause for concern, but nope.
 
27 Jun 2023
5,368
4,258
29
United kingdom
Gotta love how the CMA thought they accomplished something while in fact that doesn't change a thing about native versions (Call of Duty being the expection because of the Sony deal).
None of the regulators really know fuck all about gaming they're all easily fooled by smoke & mirror deals look at those pathetic deals they made with no name cloud services as if they'll even still be operating in 10 years time the fact is when Microsoft controls the content no other subscription service can match them on price or content
 

Dr Bass

The doctor is in
Founder
20 Jun 2022
2,042
3,450
That's a good question. TBF, did anyone think GTA would be such a cultural heavyweight after the PS2 generation? IIRC GTA4 had a more muted response compared to previous entries.

Then GTA5 turned all of that around and then some. The IP's bigger than it's ever been. GTA6 could continue that or have a somewhat more muted response a la GTA4, who knows yet. I think COD is at a point where it's just always going to sell no matter what. Even if the baseline drops to 10 million per new entry, that's still 10 million a year on top of all the MTX/DLC money and Warzone money.

I guess MS are looking at that long-term and figure it's worth $69 billion over that. Even if it's overvalued, MS aren't really hurting for cash; they make enough in company profits & revenue to get that money back in a year in pure profits, and their market revenue & valuation ensures they won't hurt for spending $69 billion on ABK.

You'd think that alone would have given regulators more pause for concern, but nope.
Of course, I agree with everything you're saying.

But I don't think MS manages its products well, and Call of Duty has been milked for all it's worth recently (IMO). GTA releases are much less frequent overall, which is what builds up desire for the next one. That and the fact it's well done and Rockstar has a great reputation for quality.

I have a really hard time foreseeing an MS managed Call of Duty being important at all in other 16 years. Just my opinion. :)
 
  • brain
Reactions: Gods&Monsters
OP
OP
JAHGamer

JAHGamer

Banned
8 May 2023
5,943
9,152
None of the regulators really know fuck all about gaming they're all easily fooled by smoke & mirror deals look at those pathetic deals they made with no name cloud services as if they'll even still be operating in 10 years time the fact is when Microsoft controls the content no other subscription service can match them on price or content
One of them already shut down 😂 (NWare) and Boosteroid already has CoD and other ABK games illegally. They just straight up don’t pay for licenses and Microsoft *still* made a 10 year deal with them
 
  • Like
Reactions: Would_you_kindly
OP
OP
JAHGamer

JAHGamer

Banned
8 May 2023
5,943
9,152
The deal is so watered down as to be useless. MS will essentially be flushing 70 bil down the toilet. Does anyone think any of this stuff will matter in 2039?
I agree, they get nothing exclusive. At this point all they’re paying for is ABK games on GamePass. What a waste, imagine that money going towards new studios or proper tech rnd
 

Hezekiah

Veteran
23 Jul 2022
1,403
1,380
The deal is so watered down as to be useless. MS will essentially be flushing 70 bil down the toilet. Does anyone think any of this stuff will matter in 2039?
I guess the benefit to them is mainly related to mobile? This deal will do very little for Xbox in the scheme of things.