Microsoft will bring Xbox games to Nvidia's cloud-gaming service to allay regulators' fears of Activision deal

BRUSSELS — Microsoft said Tuesday it volition bring its Xbox PC games to Nvidia's unreality gaming service, aft the chipmaker had reportedly expressed absorption to a large Microsoft gaming deal.

The announcement comes aft Microsoft President Brad Smith met with European Union officials connected Tuesday successful a bid to person them that its planned $69 cardinal acquisition of Activision Blizzard volition beryllium bully for competition.

Microsoft is offering the olive subdivision to halt the takeover from being blocked and thereby grow its gaming unit, which represents 9% of full revenue.

Microsoft President Brad Smith said astatine a property league that, effectual immediately, its Xbox games volition beryllium disposable connected Nvidia's GeForce Now unreality games service. Smith said if the Activision woody closes, it volition bring each Activision Blizzard titles to GeForce Now.

Nvidia is present connected committee with Microsoft's pending woody for regulatory purposes, the 2 companies said successful a joint statement.

"Combining the incredibly affluent catalog of Xbox archetypal enactment games with GeForce Now's high-performance streaming capabilities volition propel unreality gaming into a mainstream offering that appeals to gamers astatine each levels of involvement and experience," Jeff Fisher, Nvidia's elder vice president for GeForce, was quoted arsenic saying. "Through this partnership, much of the world's astir fashionable titles volition present beryllium disposable from the unreality with conscionable a click, playable by millions much gamers."

In January Bloomberg reported that Nvidia had gone to the FTC with complaints astir the Activision deal, arsenic did Google genitor Alphabet.

"The European Commission asked for our views successful the people of their inquiries into this issue. We volition proceed to cooperate successful immoderate processes, erstwhile requested, to guarantee each views are considered," a Google spokesperson told CNBC successful an email.

Microsoft projected its Activision Blizzard acquisition successful January 2022, but since the purchaser has faced pushback from regulators successful the U.S., European Union and U.K.

In November, the European Commission, the EU's enforcement arm, opened an in-depth probe into the deal citing concerns that it could trim contention successful the video games market.

Activision Blizzard is the institution down fashionable crippled franchise Call of Duty. The EU committee said past twelvemonth it is acrophobic that Microsoft could artifact entree to the crippled connected different platforms if the woody goes through.

The committee is besides acrophobic that it could springiness Microsoft an unfair borderline successful the nascent country of unreality gaming. Microsoft has a work called Game Pass done which it charges gamers $9.99 per period to entree a room of games. The Activision takeover would adhd immoderate high-profile titles to Game Pass.

Nvidia's GeForce Now has implicit 25 cardinal members, portion Microsoft said past twelvemonth that 25 cardinal radical subscribe to Game Pass. Nvidia offers escaped and paid GeForce Now tiers, though precocious solution is lone disposable to those who pay. Members of GeForce Now volition beryllium capable to watercourse done the unreality the games they bargain done Microsoft's app store, on with games listed successful Epic Games and Steam's app stores.

In December, Microsoft said it had "entered into a 10-year commitment" to bring Call of Duty to Nintendo erstwhile the Activision acquisition closes. The announcement was seen arsenic a determination to assuage regulators' antitrust concerns. On Tuesday, Smith tweeted that the 2 signs person present signed a "binding 10-year ineligible agreement" to bring Call of Duty to Nintendo players connected the aforesaid time arsenic Microsoft's Xbox, "with afloat diagnostic and contented parity."

Smith connected Tuesday led a delegation that included Microsoft Gaming CEO Phil Spencer and Activision Blizzard CEO Bobby Kotick, Reuters reported, citing a European Commission papers that the quality bureau had seen. Sony's gaming main Jim Ryan was besides successful attendance, Reuters added. Sony, Microsoft's biggest rival, opposes the Activision takeover.

Sony was not instantly disposable for remark erstwhile contacted by CNBC.

It's not lone European regulators that person concerns astir the deal.

The U.K.'s Competition and Markets Authority (CMA) said this month that the takeover raises contention concerns and whitethorn effect successful higher prices, less choices and little innovation. The regulator said it could determination to artifact the deal.

In December, the U.S. Federal Trade Commission (FTC) filed an antitrust case against Microsoft attempting to artifact the Activision deal.

Microsoft has maintained that its takeover of Activision Blizzard would not harm contention successful video gaming and alternatively summation contention against ample players similar Sony and Chinese elephantine Tencent.

Microsoft has remained down the likes of Sony and Nintendo successful the video-gaming business. Microsoft's Xbox consoles person lagged Sony's PlayStation 5 and Nintendo's Switch. Sony and Nintendo's popularity has travel from its ample fig of palmy first-party games. Microsoft is looking to boost its games room with the Activision acquisition.