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Sony

Sony Agrees to 10-Year 'Call of Duty' Deal with Microsoft (theverge.com) 26

The Verge reports that Sony "has agreed to a 10-year deal for Call of Duty with Microsoft to keep the franchise on PlayStation after the proposed Activision Blizzard acquisition." Microsoft Gaming CEO Phil Spencer says Sony and Microsoft have agreed to a "binding agreement" to keep Call of Duty on PlayStation. This ends a bitter battle between the companies that has been waged both privately and publicly over the past year after Microsoft announced its proposed acquisition of Activision Blizzard in January 2022...

Kari Perez, head of global communications at Xbox, confirmed the 10-year commitment to The Verge. Perez later confirmed to The Verge that the deal is only for Call of Duty, though. That makes the deal similar to a 10-year agreement between Microsoft and Nintendo, but not the various deals Microsoft has struck with Nvidia and other cloud gaming platforms to bring Call of Duty and other Xbox / Activision games to rival services...

Microsoft has always maintained it would keep Call of Duty on PlayStation, arguing it doesn't make financial sense to pull the game from Sony's consoles. Xbox chief Spencer tried to settle the argument in November before appearing in court last month and reiterating, under oath, that Call of Duty would remain on PlayStation 5. All eyes are now on the regulatory situation in the UK, after Microsoft's proposed deal was blocked there earlier this year.

The Financial Times writes that the Sony-Microsoft agreement "signalled a truce between the two gaming giants after a bruising 18-month battle that had seen the Japanese company become the biggest opponent to the acquisition. It follows regulatory breakthroughs for Microsoft on both sides of the Atlantic last week that have left it on brink of clinching victory for a deal that is expected to reshape the gaming industry."

The Verge also shares this interesting detail: Tensions over the fate of Microsoft's Activision Blizzard deal really came to a head when [Sony's] Jim Ryan spoke to Activision CEO Bobby Kotick on February 21st, 2023 — the same day Microsoft, Activision, Sony, and others were meeting with EU regulators. Ryan said to Kotick, "I don't want a new Call of Duty deal. I just want to block your merger." Jim Ryan confirmed the meeting during testimony in the FTC v. Microsoft hearing. "I told him [Bobby Kotick] that I thought the transaction was anti-competitive, I hoped that the regulators would do their job and block it."
Microsoft

Microsoft Wins FTC Fight To Buy Activision Blizzard (theverge.com) 68

A California judge is allowing Microsoft to close its acquisition of Activision Blizzard after five days of grueling testimony. From a report: Microsoft still faces an ongoing antitrust case by the Federal Trade Commission, but Judge Jacqueline Scott Corley has listened to arguments from both the FTC and Microsoft and decided to deny the regulator's request for a preliminary injunction. In a ruling submitted today, Judge Corley said the following: Microsoft's acquisition of Activision has been described as the largest in tech history. It deserves scrutiny. That scrutiny has paid off: Microsoft has committed in writing, in public, and in court to keep Call of Duty on PlayStation for 10 years on parity with Xbox. It made an agreement with Nintendo to bring Call of Duty to Switch. And it entered several agreements to for the first time bring Activision's content to several cloud gaming services. This Court's responsibility in this case is narrow. It is to decide if, notwithstanding these current circumstances, the merger should be halted -- perhaps even terminated -- pending resolution of the FTC administrative action. For the reasons explained, the Court finds the FTC has not shown a likelihood it will prevail on its claim this particular vertical merger in this specific industry may substantially lessen competition. To the contrary, the record evidence points to more consumer access to Call of Duty and other Activision content. The motion for a preliminary injunction is therefore DENIED.
Microsoft

Microsoft/Activision Blizzard Antitrust Hearings Reveal Internal Emails and Badly-Redacted Documents (venturebeat.com) 24

VentureBeat is enjoying "secrets that spilled out" in the Microsoft/Activision Blizzard antitrust hearings. "Whether the Federal Trade Commission wins its antitrust case or not, its attempt to stop Microsoft's $68.7 billion acquisition of Activision Blizzard has revealed a trove of new data for everyone." The FTC has argued in a federal court that the merger would harm competition in the game industry and be bad for consumers, as Microsoft could pull Activision Blizzard's games like Call of Duty away from the Sony PlayStation, despite Microsoft's stated intention of not doing so for at least 10 years. In this case, the FTC might not have had an obvious winning hand, as the industry has an odd situation. Microsoft has the highest value ($104 billion in cash alone, versus $13.4 billion for Sony) at $2.49 trillion as a company compared to $115 billion for Sony, and yet it is in third place behind Sony and Nintendo.

Hence, there's some significance to Microsoft's Xbox first-party head, Matt Booty, sending an ill-advised email in 2019 saying Microsoft "has the ability to spend Sony out of business." That was long before the deal was announced 17 months ago, but it could be used as a sign of intent. Microsoft said it never pursued this strategy. While competing fiercely is fine, using monopoly power to drive a rival out of business so you can raise prices later is a no-no...

Did the FTC prove its case? I can't say just yet. Microsoft makes a decent point in saying all the regulators of the world except the U.S. and the United Kingdom have approved the deal. But I hope to have more reasons to binge on popcorn.

In January Ars Technica noted Microsoft's contract set July 18th as the deadline for closing the deal — or else paying a $3 billion "breakup fee". The Verge spotted that some of Sony's documents were poorly redacted. While looking at the lines that were crossed out with black pens, they could see that The Last of Us Part 2 cost the company $220 million to make, with 200 people working on it, while Horizon Forbidden West cost $212 million to make, with 300 working on it for over five years. Both games made considerably more money... In the unSharpied documents, Sony also revealed that a million Call of Duty players spent 100% of their time playing Call of Duty in 2021. It also said that Call of Duty generated $800 million for PlayStation in 2021 alone in the U.S. and perhaps $1.5 billion globally. It also looks like Sony's exclusive marketing deal with Activision for Call of Duty will expire in late 2023. Sony went on to say half of PS5 owners also have a Nintendo Switch.

Microsoft also failed to redact some of its acquisition targets. Those were later marked up, but not before Axios noted that the list included Thunderful, Supergiant Games, Niantic, Playrix, Zynga, Bungie, Square Enix, Warner Bros., Sega, IO Interactive and Scopely... Among the secrets revealed among the companies Microsoft acquired: Microsoft bought Ninja Theory, maker of Hellblade: Senua's Sacrifice, for $117 million.

Thanks to Slashdot reader ole_timer for sharing the news.
Microsoft

Microsoft Exec Was Ready To 'Go Spend Sony Out of Business' To Strengthen Xbox (theverge.com) 38

Microsoft's Xbox Game Studios chief, Matt Booty, was encouraging Xbox CFO Tim Stuart to spend big money on acquiring game content in 2019 to set the company up to battle Sony in subscriptions. From a report: The revelation comes in an email thread that's part of the FTC v. Microsoft hearing. "We (Microsoft) are in a very unique position to be able to go spend Sony out of business," said Booty in a December 2019 email, referencing spending $2 billion or $3 billion in 2020 to avoid competitors getting ahead in content at a later date.

"It is practically impossible for anyone to start a new video streaming service at scale at this point," said Booty, referencing competitors like Google, Amazon, and Sony. Booty described content as a moat and that only Sony could really compete with Xbox Game Pass: "In games, Google is 3 to 4 years away from being able to have a studio up and running. Amazon has shown no ability to execute on game content. Content is the one moat that we have, in terms of a catalog that runs on current devices and capability to create new. Sony is really the only other player who could compete with Game Pass and we have a 2 year and 10 million subs lead."

Microsoft argues the email is old and that it never pursued such a strategy anyway.

PlayStation (Games)

Sony's PlayStation Chief Privately Said Microsoft's Activision Deal Wasn't About Xbox Exclusives 22

An anonymous reader shares a report: Sony's PlayStation chief, Jim Ryan, believed that Microsoft's proposed acquisition of Activision Blizzard wasn't about locking games as Xbox exclusives, according to a newly unsealed email. Microsoft counsel revealed the exchange between Ryan and Chris Deering, former CEO of Sony Computer Entertainment, discussing the announcement of the deal last year. "It is not an exclusivity play at all," said Ryan. "They're thinking bigger than that and they have the cash to make moves like this. I've spent a fair amount of time with both Phil [Spencer] Bobby [Kotick] over the past day and I'm pretty sure we will continue to see Call of Duty on PlayStation for many years to come."

The surprise revelation runs counter to Sony's arguments against Microsoft's Activision Blizzard deal and its filings with regulators. Sony has maintained it fears Microsoft could make Call of Duty exclusive to Xbox or even sabotage the PlayStation versions of the game. Ryan went on to say, "We have some good stuff cooking," referring to Sony's Bungie acquisition which Sony announced just days after the email exchange. "I'm not complacent, and I'd rather this hadn't happened, but we'll be OK, we'll be more than OK." Microsoft initially offered Call of Duty on PlayStation for three years after the current agreement between Activision and Sony ends. Ryan called that offer "inadequate on many levels." Microsoft eventually offered Sony a 10-year deal for Call of Duty on PlayStation, but the company has refused to sign this so far.
Microsoft

Xbox Admits Defeat in 'Console Wars' (windowscentral.com) 79

An anonymous reader shares a report: The courtroom showdown between the FTC and Microsoft over the tech company's proposed acquisition of Activision Blizzard kicked off this morning. First announced in early 2022, the pending transaction has been scrutinized by various global regulatory bodies. Xbox has frantically worked to appease their concerns. While addressing its potentially dominant position, Microsoft lamented its third-place position and admitted defeat in the ongoing "console wars."

Part of Microsoft's current legal strategy is demonstrating the domineering lead PlayStation and Nintendo have established in the gaming industry. Xbox entered the market in 2001, and according to Microsoft's own documentation, their consoles have been outperformed by Nintendo and Sony by a "significant margin." Despite hard-fought success in the Xbox 360 generation and notable financial gain in recent quarters, Xbox claims it's never stopped "losing the console wars." As it stands, Xbox is confidently one of "big three" players in the console market, alongside PlayStation and Nintendo. However, Microsoft states its market share is trailing notably behind the most prominent competition.

Microsoft

FTC Argues Microsoft's Deal To Buy Activision Should Be Paused (reuters.com) 21

The U.S. Federal Trade Commission on Thursday argued in federal court for a preliminary injunction to temporarily block Microsoft's acquisition of videogame maker Activision Blizzard, which would stop the deal from closing before the government's case against it is heard by an administrative judge. From a report: "If this deal is completed, the combined company ... is likely to have the ability, an incentive, to harm competition in various markets related to consoles, subscription services and the cloud (for gaming)," FTC lawyer James Weingarten said in the government's opening arguments in what is expected to be a five-day evidentiary hearing.

The FTC argues it needs a judge to block Microsoft and Activision Blizzard from closing their $69 billion merger until the agency's in-house court gets to rule on whether the combination hurts competition in the videogame industry. The FTC says the combination would give Microsoft's Xbox videogame console exclusive access to Activision games, leaving Nintendo consoles and Sony Group's PlayStation out in the cold. "I think you will see that every piece of evidence shows that it only makes sense for Xbox to make these Activision games to as many people on as many platforms as possible," Microsoft lawyer Beth Wilkinson said in opening arguments, adding that if an injunction is granted it could result in a three-year administrative proceeding that would kill the deal.

Microsoft

Microsoft Hiking the Price of Xbox Series X and Xbox Game Pass (theverge.com) 13

Microsoft is increasing its Xbox Series X prices in most countries in August apart from the US, Japan, Chile, Brazil, and Colombia. From a report: The Xbox maker is also increasing the monthly prices of its Xbox Game Pass and Xbox Game Pass Ultimate subscriptions for the first time next month, which will see the base Game Pass subscription for console move up to $10.99 a month from $9.99. "We've held on our prices for consoles for many years and have adjusted the prices to reflect the competitive conditions in each market," says Kari Perez, head of communications for Xbox, in a statement to The Verge. Xbox Series X console pricing will largely match the price hike Sony announced for the PS5 last year, with the Xbox Series X moving to $612 in the UK, $604 across most European markets, CAD $649.99 in Canada, and AUD $799.99 in Australia starting August 1st. The Xbox Series S pricing will not be adjusted in any markets, remaining at $299.99.
XBox (Games)

Microsoft Is No Longer Making New Games For the Xbox One (engadget.com) 10

Microsoft says it is no longer making games for the Xbox One but will continue to support ongoing previous-generation titles like Minecraft and Halo Infinite. Engadget reports: "We've moved on to gen 9," Xbox Game Studios head Matt Booty told Axios, referring to the Xbox Series X/S consoles. The company also makes its games for PC. This move had to happen at some point to avoid newer and more complex games being hamstrung by the hardware limitations of the decade-old Xbox One. Still, it'll be possible for those clinging onto an Xbox One to play Series X/S titles such as Starfield and Forza Motorsport through Xbox Cloud Gaming. "That's how we're going to maintain support," Booty said.

The move away from Xbox One will free Microsoft's teams from the shackles of the previous generation. However, some third-party developers have raised concerns that the Xbox Series S, which is less powerful than the Series X, is holding them back too. Booty conceded that making sure games run well on the Series S requires "more work." Still, he noted Microsoft's studios (particularly those working on their second games for this generation of consoles) are now able to better optimize their projects for the Series S.

Microsoft

Microsoft To Pay $20 Million Settlement For Illegally Collecting Children's Personal Data (techcrunch.com) 15

Microsoft has agreed to pay $20 million to settle charges by the Federal Trade Commission (FTC) that it illegally collected personal information from children without parental consent and retained it for extended periods. TechCrunch reports: The federal consumer watchdog said Microsoft violated the Children's Online Privacy Protection Act (COPPA), the federal law that governs the online privacy protections for children under the age of 13, which requires companies notify parents about the data they collect, obtain parental consent and delete the data when it's no longer necessary. The FTC said children signing up to Microsoft's Xbox gaming service were asked to provide their personal information -- including their name, email address, phone number and date of birth -- which until 2019 included a pre-filled check box allowing Microsoft to share user information with advertisers. The FTC said Microsoft collected this data before asking for the parent to complete the account setup, but held onto children's data even if the parent abandoned the sign-up process.

"Only after gathering that raft of personal data from children did Microsoft get parents involved in the process," said FTC's Lesley Fair in a corresponding blog post. As a result, the FTC will require Microsoft to notify parents and obtain consent for accounts created before May 2021. Microsoft will also have to establish new systems to delete children's personal information if it hasn't obtained parental consent, and to ensure the data is deleted when it's no longer needed.

Businesses

Sega CEO Hints at Raising Game Prices To $70 in Line With Other Platforms 43

An anonymous reader shares a report: CEO of Sega, Haruki Satomi, and CFO Koichi Fukuzawa have alluded to raising the price of specific titles to bring them in line with other AAA titles published by the likes of Xbox, PlayStation, and Nintendo. "In the global marketplace, AAA game titles for console have been sold at $59.99 for many years, but titles sold at $69.99 have appeared in the last year," Satomi and Fukuzawa said in a financial earnings call. "We would like to review the prices of titles that we believe are commensurate with price increases." Sega is slightly late to the price-raising party as multiple publishers have already shifted top AAA games to the heights of $70. PlayStation first advertised God of War Ragnarok for $70 on the PS5, and Xbox will also price Starfield at this amount for the Xbox Series X|S. It seems as if this is the new norm for the gaming industry.
XBox (Games)

'Just Making Great Games' Won't Change Xbox Console Market Share, Says Spencer (videogameschronicle.com) 54

While claiming that "the console is the core of the Xbox brand," Microsoft's head of gaming has reiterated the company needs to focus on the wider gaming market if it's to be successful. From a report: During the Kinda Funny Games Xcast podcast, Spencer was asked if Xbox has taken its eye off the console market by focusing too much on PC. In response, Spencer said Microsoft would be wrong to think that just building great console titles could help it overtake Sony and Nintendo in terms of hardware sales. Instead, it has chosen to pursue a different strategy to the Japanese companies, one focused on fulfilling developers' vision of enabling customers to play their games on any screen. "We're not in the business of out-consoling Sony or out-consoling Nintendo," Spencer said. "There isn't really a great solution or win for us. And I know that will upset a ton of people, but it's just the truth of the matter that when you're third place in the console marketplace and the top two players are as strong as they are, and have in certain cases a very, very discrete focus on doing deals and other things that kind of make being Xbox hard for us as a team, [and] that's on us, not on anybody else."

He added: "I see commentary that if you just built great games everything would turn around. It's just not true that if we go off and build great games then all of a sudden you're going to see console share shift in some dramatic way. We lost the worst generation to lose in the Xbox One generation where everybody built their digital library of games. So, when you go and you're building on Xbox, we want our Xbox community to feel awesome, but this idea that if we just focused more on great games on our console that somehow we're going to win the console race, I think doesn't really lay into the reality of most people." Spencer claimed that 90% of the people who buy a console every year already own a PlayStation, Nintendo or Xbox console, and their digital game library lives on that ecosystem.

Open Source

Linux Kernel 6.3 Released (zdnet.com) 16

An anonymous reader quotes a report from ZDNet, written by Steven Vaughan-Nichols: The latest Linux kernel is out with a slew of new features -- and, for once, this release has been nice and easy. [...] Speaking of Rust, everyone's favorite memory-safe language, the new kernel comes with user-mode Linux support for Rust code. Miguel Ojeda, the Linux kernel developer, who's led the efforts to bring Rust to Linux, said the additions mean we're, "getting closer to a point where the first Rust modules can be upstreamed."

Other features in the Linux 6.3 kernel include support and enablement for upcoming and yet-to-be-released Intel and AMD CPUs and graphics hardware. While these updates will primarily benefit future hardware, several changes in this release directly impact today's users' day-to-day experience. The kernel now supports AMD's automatic Indirect Branch Restricted Speculation (IBRS) feature for Spectre mitigation, providing a less performance-intensive alternative to the retpoline speculative execution.

Linux 6.3 also includes new power management drivers for ARM and RISC-V architectures. RISC-V has gained support for accelerated string functions via the Zbb bit manipulation extension, while ARM received support for scalable matrix extension 2 instructions. For filesystems, Linux 6.3 brings AES-SHA2-based encryption support for NFS, optimizations for EXT4 direct I/O performance, low-latency decompression for EROFS, and a faster Brtfs file-system driver. Bottom line: many file operations will be a bit more secure and faster.

For gamers, the new kernel provides a native Steam Deck controller interface in HID. It also includes compatibility for the Logitech G923 Xbox edition racing wheel and improvements to the 8BitDo Pro 2 wired game controllers. Who says you can't game on Linux? Single-board computers, such as BannaPi R3, BPI-M2 Pro, and Orange Pi R1 Plus, also benefit from updated drivers in this release. There's also support for more Wi-Fi adapters and chipsets. These include: Realtek RTL8188EU Wi-Fi adapter support; Qualcomm Wi-Fi 7 wireless chipset support; and Ethernet support for NVIDIA BlueField 3 DPU. For users dealing with complex networks that have both old-school and modern networks, the new kernel can also handle multi-path TCP handling mixed flows with IPv4 and IPv6.
Linux 6.3 is available from kernel.org. You can learn how to compile the Linux kernel yourself here.
Windows

Microsoft Is Experimenting With a Steam Deck-Friendly 'Handheld Mode' For Windows (arstechnica.com) 16

Andrew Cunningham writes via Ars Technica: Microsoft is aware of the problems running Windows on the Steam Deck and other similar handheld Windows PCs, and at least some developers inside the company have spent time thinking of ways to address them. That's the thrust of a leaked presentation (posted in two parts by Twitter user _h0x0d_) about a new "Handheld Mode" for Windows, developed as part of an internal Microsoft hackathon in September 2022.

As presented, Handheld Mode includes several components: a new first-time setup screen that simplifies driver installation and setup; an improved touchscreen keyboard that fits better on a 7-inch screen and can be controlled Xbox-style with the built-in buttons and joysticks; a simplified Nintendo Switch-esque game launcher; and improved OS-wide controller support thanks to the open source Steamdeck Windows Controller Driver (SWICD) project. The presentation also calls for other changes to Windows' default behaviors, like always opening apps in full-screen mode when in Handheld Mode, better UI scaling for small screens, and "mapping of controls to common Windows functions."

XBox (Games)

Microsoft Crackdown Disables Emulators Downloaded To Xbox Consoles 50

An anonymous reader shares a report: Back in 2020, we reported that emulator developers were using a hole in the Xbox Store's app distribution system to get around Microsoft's longstanding ban on emulators running on Xbox consoles. This week, though, many of the emulators that were distributed through that workaround have stopped working, the apparent victims of a new crackdown by Microsoft. Xbox emulator makers and users can't say they weren't warned. In the "Gaming and Xbox" section of Microsoft's official Store Policies, section 10.13.10 clearly states that "products that emulate a game system or game platform are not allowed on any device family."

Microsoft's enforcement of this clause has historically focused on removing emulators published as "private" UWP apps to the Xbox Store. Those apps could be distributed to whitelisted users via direct links accessed on the system's Edge browser, getting around the usual approval process for a public store listing. Previously, users who downloaded one of these "hidden" emulator listings before Microsoft's inevitable takedown could run that emulator on an unmodified retail system indefinitely. That is no longer the case; trying to launch downloaded versions of emulators like Xenia or Retrospection on an Xbox console now generates an error saying, "Unable to launch this game or app. The game or app you're trying to launch violates Microsoft Store policy and is not supported."
Sony

Sony Worries Microsoft Will Only Give It a 'Degraded' Call of Duty (arstechnica.com) 67

An anonymous reader quotes a report from Ars Technica: Late last month, UK regulators said they no longer believed a proposed Microsoft-owned Activision would bar Call of Duty games from PlayStation platforms, a reversal of earlier preliminary findings. Even if you grant that premise, though, Sony says that it's still worried Microsoft could give PlayStation owners a "degraded" version of new Call of Duty games in an effort to make the Xbox versions look better.

In a newly published response (PDF) to the UK's Competition and Markets Authority, Sony says the regulators' recent turnaround is "surprising, unprecedented, and irrational." The company takes specific issue with the regulators' "lifetime value" modeling, which Sony says heavily undervalues what an Xbox-exclusive Call of Duty would be worth to Microsoft. Beyond those technical concerns, though, Sony says it worries that Microsoft might subtly undermine PlayStation "simply by not making it as good as it could be." That could include small changes to the game's "performance [or] quality of play," but also secondary moves to "raise [Call of Duty's] price [on PlayStation], release the game at a later date, or make it available only on Game Pass." Microsoft would also "have no incentive to make use of the advanced features in PlayStation not found in Xbox," Sony says, an apparent reference to the PS5 controller's advanced haptics and built-in audio capabilities.

In its own newly filed response (PDF), Microsoft reiterated that it has "no intention to withhold or degrade access to Call of Duty or any other Activision content on PlayStation." That follows on a March filing where Microsoft promised Sony parity on Call of Duty's "release date, content, features, upgrades, quality, and playability." But Sony's response reflects a continued lack of trust in such promises. The company cites detailed analyses from the likes of Digital Foundry in saying that "the technical quality of Modern Warfare II was similar across platforms" in today's market. After a merger, though, Sony argues that "Microsoft would have different incentives because degrading the experience on PlayStation would benefit Xbox, PlayStation's 'closest rival.'"
"This kind of 'partial foreclosure' strategy might 'trigger fewer gamer complaints' than full Xbox exclusivity for Call of Duty, Sony says, while also allowing Microsoft to 'still secure revenues from sales of Call of Duty on PlayStation for a transitional period,'" reports Ars. "But Sony says the long-term results of this kind of 'degraded' PlayStation version would be the same as a full PlayStation ban: Call of Duty players abandoning Sony and moving to Microsoft's platforms."

"Such a move would 'seriously damage our reputation,' Sony Interactive Entertainment CEO Jim Ryan told the CMA in a recent hearing. 'Our gamers would desert our platform in droves and network effects would exacerbate the problem. Our business would never recover.'"
Microsoft

New Microsoft Toolkit Will Measure Real-Time Xbox Energy Use (bloomberg.com) 25

How much energy does it take to play Xbox? Microsoft is helping developers find out. At the 2023 Game Developers Conference in San Francisco, the company announced a new toolkit for developers to measure real-time energy consumption from Xbox games. From a report: The toolkit, which Redmond, Washington-based Microsoft calls the first of its kind in the industry, will allow developers using the Xbox platform to monitor real-time energy use of the games they create -- "down to the nearest millisecond," the company noted in a press release. It will also help Microsoft establish a baseline for Xbox games, which could then serve as a benchmark for developers. The company hopes game-makers will also leverage the toolkit to experiment with approaches that reduce energy consumption. Some 60 years after the debut of the world's first video game, the industry has grown into a $214 billion global juggernaut. With that growth comes an increased environmental impact -- but one that can be difficult to quantify with precision, particularly as it varies widely by console, game and system setup.
Microsoft

Microsoft Plans Mobile Games Store To Rival Apple and Google (ft.com) 29

Microsoft is preparing to launch a new app store for games on iPhones and Android smartphones as soon as next year if its $75bn acquisition of Activision Blizzard is cleared by regulators, according to the head of its Xbox business. From a report: New rules requiring Apple and Google to open up their mobile platforms to app stores owned and operated by other companies are expected to come into force from March 2024 under the EU's Digital Markets Act. "We want to be in a position to offer Xbox and content from both us and our third-party partners across any screen where somebody would want to play," said Phil Spencer, chief executive of Microsoft Gaming, in an interview ahead of this week's annual Game Developers Conference in San Francisco. "Today, we can't do that on mobile devices but we want to build towards a world that we think will be coming where those devices are opened up."

Microsoft is fighting with regulators in the US, Europe and UK, which have all raised concerns about the potential impact on competition from the owner of the Xbox console buying the developer of Call of Duty, one of the world's most popular games franchises. PlayStation maker Sony has been a vocal opponent of the deal. However, Spencer argues the deal can boost competition in what he called the "largest platform people play on" -- smartphones -- where Apple and Google currently operate what some antitrust authorities have called a "duopoly" over distribution of games and other apps. [...] While acknowledging it was hard to predict exactly when Microsoft will be able to launch its own store, Spencer said it would be "pretty trivial" for Microsoft to adapt its Xbox and Game Pass apps to sell games and subscriptions on mobile devices. Microsoft's current lack of mobile games was an "obvious hole in our capability" that it needed Activision Blizzard to fill, he added.

Microsoft

Microsoft Signs Another Call of Duty Deal In Bid To Impress Regulators (arstechnica.com) 18

An anonymous reader quotes a report from Ars Technica: Microsoft announced Tuesday that it has signed a 10-year deal to bring its Xbox PC games to little-known Ukraine-based streaming platform Boosteroid. The move is being positioned in part to "mak[e] even more clear to regulators that our acquisition of Activision Blizzard will make Call of Duty available on far more devices than before," as Microsoft Vice Chair and President Brad Smith said in a statement. "If the only argument is that Microsoft is going to withhold Call of Duty from other platforms, and we've now entered into contracts that are going to bring this to many more devices and many more platforms, that is a pretty hard case to make to a court," Smith told The Wall Street Journal.

Started in 2017, Boosteroid boasts 4 million streaming customers using servers based in nine European countries and six US states. Those customers pay 7.50 euro per month to stream games from those servers to any smartphone, Windows/Mac/Linux-based PC, or Android TV device. Boosteroid currently links to users' accounts on other PC-based platforms -- including Steam, the Epic Games Store, Blizzard's Battle.net, EA's Origin, the Rockstar Game Launcher, and Wargaming -- and lets them play games from those services without having to install them on a local gaming PC. With this new deal, that access will expand to include games available through Microsoft's Xbox app on the PC.

Microsoft

Microsoft Tells UK It Will License 'Call of Duty' To Sony For 10 Years (reuters.com) 52

Microsoft said it would license Activision Blizzard's "Call of Duty" (CoD) to Sony for 10 years to address concerns raised by Britain over its $69 billion takeover of the games maker, according to a document published by the regulator. From a report: "Microsoft is proposing a package of licensing remedies which (i) guarantee parity between the PlayStation and Xbox platforms in respect of CoD and (ii) ensure wide availability of CoD and other Activision titles on cloud gaming services," Microsoft said in the document published on Wednesday.

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