Computer software company Microsoft signed a 10-year licensing deal on Tuesday with an aim to bring Activision’s Call of Duty franchise to cloud gaming provider Boosteroid’s platform.
This is a move partly aimed at allaying competition concerns over its Activision acquisition per a report by Reuters.
BusinessTech Africa understands that the Activision bid announced in January last year, Microsoft’s biggest ever deal, aims to boost its firepower in the booming video gaming market against leaders Tencent and Sony, and lay the base for its investment in the metaverse.
Ukraine-based Boosteroid’s access to Call of Duty is conditional on regulatory approval for the Activision deal.
It is also reported that the transaction will also bring Microsoft’s Xbox PC games to Boosteroid’s cloud gaming platform.
“We believe in the power of games to bring people together. That’s why Xbox is committed to giving everyone more ways to play their favorite games, across devices,” said Phil Spencer, chief executive of Microsoft’s gaming division.
“Bringing Xbox PC games to Boosteroid members, including Activision Blizzard titles such as ‘Call of Duty’ once the deal closes, is yet another step in realizing that vision.”
The American tech giant has similar licensing deals with Nvidia, Nintendo, and U.S. distributor Valve Corp, which is the owner of the world’s largest video game distribution platform, Steam.
Meanwhile, EU antitrust regulators are now expected to approve Microsoft’s takeover of Activision conditional on such licensing deals, people familiar with the matter have told Reuters.
The United Kingdom watchdog, however, could be more difficult to convince and in addition to Ukraine, Boosteroid also has gamers in the United States, the United Kingdom, and EU countries.
