Microsoft signs 10-year deal with Spain's Nware after UK watchdog blocks Activision bid

Deal aims to bring Xbox and Activision Blizzard games to the European cloud-gaming platform

Microsoft's experience centre in London. The UK’s Competition and Markets Authority prevented the Microsoft and Activision deal saying it “would alter the future of the fast-growing cloud-gaming markeShow more

Technology company Microsoft has joined forces with the cloud gaming platform Nware in Madrid just days after its proposed $69 billion takeover of gaming company Activision Blizzard was blocked by the UK’s antitrust watchdog.

The Redmond-headquartered company has signed a 10-year deal with Nware to bring Xbox and Activision Blizzard games to the European cloud-gaming platform.

"Microsoft and European cloud gaming platform Nware have signed a 10-year agreement to stream PC games built by Xbox on its platform, as well as Activision Blizzard titles after the acquisition closes," Microsoft president Brad Smith said on Twitter.

"While it's still early for the emerging cloud segment in gaming, this new partnership combined with our other recent commitments will make more popular games available on more cloud game streaming services than they are today," he added.

The entities did not disclose financial details of the deal.

In the past, the Xbox console maker has signed similar deals with the owners of various streaming platforms such as Valve Corp, Ubitus, Nvidia and Boosteroid.

This week, Microsoft reported a 9 per cent jump in its net profit to $18.3 billion in the three months to the end of March.

Revenue during the January-March period jumped 7 per cent to $52.9 billion, exceeding analysts' expectations of $51.02 billion. Xbox content and services revenue was up 3 per cent in the quarter.

Earlier this week, the UK’s Competition and Markets Authority prevented the Microsoft and Activision deal, saying it “would alter the future of the fast-growing cloud-gaming market, leading to reduced innovation and less choice for UK gamers over the years to come”.

Both Microsoft and Activision plan to challenge the decision.

Mr Smith said the decision to stop the deal “had shaken confidence in the UK tech industry” and was “probably the darkest day in our four decades in Britain”.

Activision said it would “work aggressively with Microsoft to reverse this on appeal”.