After Nintendo, Microsoft signs deal with Nvidia to win regulators over Activision merger

In the wake of Microsoft's proposed $68.7 billion acquisition of Activision Blizzard, the tech giant is taking proactive steps to ease regulatory concerns over the deal. Microsoft has announced that it has inked a deal with Nvidia to put Xbox games on its cloud gaming service, GeForce Now. The move is seen as an attempt to win over regulators by demonstrating Microsoft's willingness to work with third-party companies and foster a competitive gaming market.

GeForce Now is Nvidia's cloud gaming service, which allows gamers to stream games on their devices without requiring powerful hardware. The service is compatible with a variety of devices, including laptops, desktops, and mobile devices, making it an attractive option for gamers who don't want to invest in expensive gaming rigs.

By putting Xbox games on GeForce Now, Microsoft is effectively opening up its ecosystem to a wider audience. This move is particularly significant because Microsoft has its own cloud gaming service, Xbox Cloud Gaming, which is a direct competitor to GeForce Now. By partnering with Nvidia, Microsoft is showing that it is willing to work with other companies to provide gamers with more options.

The deal also helps Microsoft address regulatory concerns over the Activision acquisition. Regulators are concerned that the deal could harm competition in the gaming market, particularly in the PC gaming space. By making Xbox games available on GeForce Now, Microsoft is demonstrating that it is committed to fostering a competitive market and is not seeking to monopolize the space.

“Xbox remains committed to giving people more choice and finding ways to expand how people play,” Microsoft Gaming CEO Phil Spencer said in a statement. “This partnership will help grow NVIDIA’s catalog of titles to include games like Call of Duty, while giving developers more ways to offer streaming games. We are excited to offer gamers more ways to play the games they love.”

Phil Eisler, vice president and general manager of Nvidia's GeForce Now segment, said that titles such that "Call of Duty" will not be available on Nvidia's service unless Microsoft acquires Activision but that other Microsoft-owned titles such as "Minecraft" are covered immediately under the 10-year license agreement.

"We were a little concerned about it at the beginning," Eisler said of the Microsoft-Activision deal. "But then we reached out to Microsoft, and they were very open about wanting to enable cloud gaming and work with us on a 10-year license agreement. So over time, they made us more and more comfortable with it."

The partnership between Microsoft and Nvidia is just one of the many steps that Microsoft is taking to address regulatory concerns over the Activision acquisition. The company also confirmed its partnership with Nintendo earlier this week. "Microsoft and Nintendo have now negotiated and signed a binding 10-year legal agreement to bring Call of Duty to Nintendo players — the same days as Xbox, with full feature and content parity," Microsoft wrote in a statement. "We are committed to providing long-term equal access to Call of Duty to other gaming platforms."

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