Ubisoft Secures Cloud Streaming Rights for Activision Blizzard Games

Ubisoft has obtained cloud streaming rights for Call of Duty and other Activision Blizzard games as part of Microsoft’s recently completed deal with the gaming giant. This concession was crucial in obtaining approval from UK regulators. As a result, Ubisoft will have control over where these games appear on cloud gaming services, except for EU countries and the various cloud gaming deals that Microsoft had previously signed.

For gamers residing in European Economic Area (EEA) countries, which includes EU countries, Iceland, Liechtenstein, and Norway, the deal grants them a free license to stream all current and future Activision Blizzard PC and console games via their choice of cloud gaming services. However, for those outside the EEA, it will be up to Ubisoft to determine which services receive cloud streaming rights for Activision Blizzard games. Ubisoft may also choose to license these games back to Microsoft for inclusion in Xbox Cloud Gaming.

While there is a legal possibility for Ubisoft to offer exclusive cloud streaming rights to certain providers, it is highly unlikely. The industry is aware that Ubisoft holds the rights, and any attempt to deny or block games from specific cloud services could lead to backlash. Microsoft will need to pay a wholesale arrangement fee to license Activision Blizzard games for its cloud services.

The European Commission remedy ensures that cloud providers will continue to receive a free license to stream these games in EU markets. Multiple companies competed for the cloud gaming rights for Activision Blizzard games, and their proposals were evaluated by the UK’s Competition and Markets Authority. Ultimately, it was Microsoft’s decision to restructure its deal with Ubisoft.

Ubisoft’s substantial experience in the streaming space played a crucial role in Microsoft’s decision to partner with them. Ubisoft was the first studio to collaborate with Google for Stadia, the first company to join forces with Amazon for Luna, and a long-term partner with NVIDIA GeForce Now. Chris Early, Ubisoft’s SVP of strategic partnerships and business development, explains that Microsoft recognized the value of working with a company familiar with the streaming landscape.

As a result of the deal with Ubisoft, Activision Blizzard games will become available on Ubisoft Plus, the company’s game subscription service. While work has already begun to bring these games to the subscription service, it remains unclear when they will all be accessible.

Although the deal lasts for 15 years, Ubisoft will retain perpetual licenses, allowing the company to continue providing games worldwide, excluding the EEA, even after the expiration of the 15-year period. Early mentions that Ubisoft also has the option to license the rights individually to other companies, potentially contributing to the evolution of streaming services.

In addition to Ubisoft Plus, Activision Blizzard games will be available on various cloud gaming services, thanks to deals Microsoft struck to comply with EU regulations. These deals include collaborations with Nintendo and Sony for Call of Duty, as well as a commitment to Valve to keep the game on its Steam store.

The future of streaming presents exciting possibilities, and Ubisoft’s acquisition of cloud streaming rights for Activision Blizzard games marks a significant step in shaping the evolving landscape of gaming.