Microsoft has announced a deal with Nvidia to bring its GeForce Now cloud gaming service to Xbox Game Pass Ultimate subscribers, in an attempt to ease regulators’ concerns over its proposed $68.7bn acquisition of Activision Blizzard.
The deal comes after the US Federal Trade Commission (FTC) announced that it would be launching an investigation into the merger, amid concerns that the combined company would have too much power in the gaming industry.
In an effort to assuage regulators, Microsoft has been seeking partnerships with other companies to bolster its gaming offerings and provide more options for consumers. The deal with Nvidia is one such partnership, with the aim of bringing more games to Xbox Game Pass Ultimate, Microsoft’s subscription-based gaming service.
GeForce Now allows users to play games on a range of devices, including phones, tablets, laptops, and PCs, without the need for high-end hardware. The service offers access to a vast library of games from various publishers, including Activision Blizzard, which is currently the subject of the proposed merger.
Under the deal, Xbox Game Pass Ultimate subscribers will have access to a selection of Nvidia’s cloud-based games via GeForce Now. Microsoft has not provided details on which games will be available or when the service will be launched.
The partnership with Nvidia is just one of several moves that Microsoft has made in recent months to expand its gaming portfolio. In September 2021, the company announced the acquisition of game developer Bethesda for $7.5bn, which added popular franchises such as Doom, Fallout, and The Elder Scrolls to its stable.
Microsoft’s proposed acquisition of Activision Blizzard would further bolster its position in the gaming industry, with the company gaining access to franchises such as Call of Duty, World of Warcraft, and Candy Crush. However, the deal is still subject to regulatory approval, and the investigation by the FTC is ongoing.
In summary, Microsoft’s deal with Nvidia is an attempt to address regulators’ concerns over its proposed acquisition of Activision Blizzard. The partnership will bring Nvidia’s cloud gaming service, GeForce Now, to Xbox Game Pass Ultimate subscribers, providing access to a library of games without the need for high-end hardware. The move is part of Microsoft’s efforts to expand its gaming portfolio and provide more options for consumers, amid increasing competition in the gaming industry.