In a recent turn of events, NVIDIA decided to support the Microsoft-Activision merger. Although they opposed Microsoft’s plans to acquire Activision-Blizzard, NVIDIA changed its mind. Microsoft stated it would bring its Xbox PC games to the chipmaker’s cloud gaming service.
The tech giant offered an olive branch to stop them from blocking the merger. It’s also to expand their gaming unit, which represents 9% of their total revenue. Although sales are also slowing down, Microsoft continues to expand its collection of games to sell.
They also continue to draw on their funds to allow people to play on their cloud data centers. Brad Smith, President of Microsoft, says that Xbox games are available on the GeForce Now cloud service, effective immediately. Smith also says that, once the merger pushes through, they will bring all Activision games to GeForce Now.
NVIDIA’s Decision
Now that they are supporting Microsoft’s decision to merge with Activision-Blizzard, it leaves us with questions. Both companies also released a joint statement for their 10-year deal. So, does that mean as long as there is an incentive, everyone should allow the acquisition?
Combining the incredibly rich catalog of Xbox first-party games with GeForce Now’s high-performance streaming capabilities will propel cloud gaming into a mainstream offering that appeals to gamers at all levels of interest and experience
Jeff Fisher, Nvidia’s Senior V.P. GeForce
Brad Smith also said that the deal with the chipmaker is meaningful. They stated that they can now address the full range of issues raised by regulators. Undoubtedly, since November, the UK Competition and Markets Authority (CMA) launched an inquisition.
They also aim to investigate the merger because it could harm the competition within the market. The possibility of an unfair edge in the video game arena concerns the CMA. More on this as the news develops.
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