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Microsoft Sold Activision-Blizzard Cloud-Streaming Rights to Ubisoft: What the Deal Means

Microsoft transferred Activision Blizzard cloud-streaming rights outside the EEA to Ubisoft—not ownership of the games or studios. Here is how the 2023 deal works and what it means for players.
From TheFinanceBase Team4 min to read

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Microsoft transferred cloud-streaming rights for Activision Blizzard’s PC and console games to Ubisoft outside the European Economic Area (EEA). The transfer covers existing games and covered games released during a 15-year period, and it completed on October 13, 2023. Ubisoft did not acquire Activision Blizzard, its studios, or ownership of the games.

What Microsoft transferred to Ubisoft

The transaction concerns cloud-streaming rights, not the underlying ownership of Activision Blizzard or its game catalog. Ubisoft received the relevant rights for current Activision Blizzard PC and console games and for such games released during the following 15 years.

The rights apply globally except in the EEA. Ubisoft described them as exclusive outside the EEA and non-exclusive in the EEA, but the EEA is governed by a separate licensing arrangement rather than Ubisoft’s exclusive control.

What Ubisoft did not buy

  • Activision Blizzard as a company
  • Activision Blizzard’s game studios
  • Ownership of franchises such as Call of Duty, Warcraft, or Diablo
  • An automatic guarantee that any particular game is included in Ubisoft’s subscription catalog

When the deal took effect

Microsoft announced the restructuring on August 21, 2023. Ubisoft announced that the rights transaction completed on October 13, 2023, the same day Microsoft closed its acquisition of Activision Blizzard.

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Those were separate transactions: Microsoft acquired Activision Blizzard, while Ubisoft received the specified cloud-streaming rights outside the EEA.

Where Ubisoft’s rights apply

Arrangement Territory Who controls or licenses streaming rights Duration or scope
Ubisoft rights transfer Worldwide except the EEA Ubisoft holds the transferred cloud-streaming rights and can license them to providers Current covered games plus covered PC and console games released during the next 15 years
EEA commitments European Economic Area Microsoft must make eligible games available for licensing to cloud providers under European Commission commitments Microsoft’s commitments last 10 years; a consumer or provider license obtained during that period endures perpetually under Microsoft’s stated terms

How the EEA arrangement differs

Consumers in the EEA are not limited to an Ubisoft-controlled streaming route. The European Commission’s arrangement gives eligible consumers a free license to stream qualifying games through a cloud service of their choice, provided they have a license to the game itself. Eligible cloud-streaming providers also receive licensing opportunities.

The provider-license commitment applies whether or not Microsoft itself streams the eligible games. This is a specific EEA regulatory commitment and should not be treated as a worldwide rule.

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Why Microsoft restructured the deal

The original Microsoft-Activision proposal raised competition concerns in the United Kingdom, particularly about whether Microsoft’s control of Activision Blizzard content could weaken competition in cloud gaming.

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Microsoft changed the proposal so it would not acquire the non-EEA cloud-streaming rights. The UK Competition and Markets Authority then reviewed the revised transaction separately. On October 13, 2023, the CMA cleared it, saying the revised structure addressed its concerns.

“The new deal for Microsoft to buy Activision without cloud gaming rights has been cleared after the CMA concluded it would preserve competitive prices and better services.”

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UK Competition and Markets Authority, October 13, 2023

The regulatory theory was straightforward: separating the non-EEA streaming rights from Microsoft’s acquisition left another company able to license Activision Blizzard cloud content to competing services.

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Does Ubisoft own the Activision Blizzard cloud-gaming rights?

Ubisoft controls the transferred rights outside the EEA, but “owns the Activision Blizzard cloud-gaming rights” is an imprecise shorthand. The deal transferred a defined bundle of streaming rights; it did not transfer Activision Blizzard’s games, intellectual property, studios, or the company itself.

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In the EEA, Ubisoft does not have exclusive streaming rights. Microsoft’s Commission commitments create a separate licensing framework for eligible consumers and providers.

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Does this mean Call of Duty is on Ubisoft+?

Not necessarily. Receiving cloud-streaming rights gives Ubisoft the ability to license or arrange streaming access; it does not establish that a particular Activision Blizzard title is currently available through Ubisoft’s subscription service or any other service.

Availability depends on the current catalog, territory, platform, game-license requirements, and provider agreements. Those details must be checked against the relevant service’s current listing rather than inferred from the 2023 transaction.

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What the transaction means for players and providers

For players outside the EEA

  • Ubisoft is the rights holder for the transferred cloud-streaming rights and can make licensing arrangements with providers.
  • Access still depends on a provider offering the game in the player’s country and on any separate purchase or subscription requirement.
  • The rights transfer alone does not promise day-one streaming, inclusion in Ubisoft+, or availability on every cloud service.

For players in the EEA

  • Eligible games are subject to the Commission-backed licensing framework rather than Ubisoft’s exclusive control.
  • Consumers can use a participating cloud service of their choice when they meet the applicable game-license conditions.
  • The framework’s duration and eligibility rules are distinct from Ubisoft’s non-EEA rights.

For cloud-streaming providers

Outside the EEA, providers must negotiate with the holder of the transferred rights. In the EEA, qualifying providers can rely on Microsoft’s licensing commitments, subject to the arrangement’s eligibility and licensing conditions.

Key takeaways

  1. Microsoft transferred cloud-streaming rights, not Activision Blizzard or its games, to Ubisoft.
  2. The transfer covers current covered PC and console games and covered releases during a 15-year forward window.
  3. Ubisoft’s transferred rights apply outside the EEA.
  4. The EEA follows a separate European Commission licensing framework.
  5. The rights transaction completed on October 13, 2023.
  6. The restructuring was designed to resolve UK competition concerns about cloud gaming.
  7. A rights transfer does not prove that any specific game is currently available on Ubisoft+ or another service.

The Bottom Line

Microsoft’s Activision Blizzard acquisition went ahead after Ubisoft received the non-EEA cloud-streaming rights for covered current and future games. The arrangement changed who can license those games for cloud play, but it did not make Ubisoft the owner of Activision Blizzard or guarantee a particular game’s availability on Ubisoft+.

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