Microsoft Forms New 10-Year Partnership with Nware, a European Cloud Gaming Platform

Microsoft has entered into a new decade-long agreement with Nware, a European cloud gaming service, marking its latest move in the cloud gaming sector. The partnership, announced by Microsoft President Brad Smith via Twitter, aims to bring Xbox-developed PC games and future Activision Blizzard titles to Nware's streaming platform. This development comes amidst the UK's Competition and Markets Authority (CMA) blocking the proposed $68.7 billion Activision Blizzard acquisition due to concerns over cloud gaming competition. Microsoft had proposed various remedies, including similar partnerships with Nvidia GeForce, Boosteroid, Ubitus, and EE, but these were deemed insufficient by the CMA. Analysts have highlighted that cloud gaming services like Nware operate on a 'bring-your-own-game' model, differing from Xbox Game Pass's multi-game subscription approach. Recent findings also indicate that Microsoft's ten-year deals grant the company all revenue from in-game purchases, contrasting with the standard 30% cut taken by most platforms. As Microsoft plans to appeal the CMA's decision, a process that could extend into 2024, the company's cloud gaming strategy and the fate of the Activision Blizzard acquisition remain under scrutiny.