The last few weeks have been really important with a view to the future of the purchase of Activision Blizzard, especially due to the agreements reached by Microsoft with different companies to deal with possible monopolistic tactics. And precisely speaking of this, the CMA has reached the conclusion that consider Xbox Game Pass and GeForce Now similar servicesdespite all the controversy that has been going on about the difference between the services.
After announcing an agreement with Nvidia with which Microsoft will bring all its games to the company’s streaming game service, with which they address possible competition concerns that may exist between it and xCloud, in its last pronunciation, the CMA has considered that Xbox Game Pass and GeForce Now compete properly in the same marketas shared by the user @SeninnSage.
Xbox Game Pass and GeForce Now are similar services, according to the CMA
As we already mentioned, the main difference between Xbox Game Pass (or xCloud more specifically) and GeForce Now is that Microsoft’s streaming service offers us access to a large catalog with the payment of the subscription; while the Nvidia service will only allow us to play those titles that we have in possession, and that are also compatible with the service, which will bring benefits to Microsoft.
We consider BYOG (GeForce Now) and MGS (xCloud) cloud gaming services to be substitutes within the same market (as explained in the Market Definition chapter). As such, any added benefit of Activision’s content being available on Microsoft’s MGS cloud gaming service if the merger does not take place is likely to be considerably less in magnitude than the detriment of its being locked out of the service. cloud gaming rival.
Therefore, far are those voices that indicated that both services did not compete in the same league, something that logically was already completely ruled out from the moment that Microsoft and Nvidia signed the agreement that we mentioned above. Now we just have to wait to see how the situation progresses, but that the CMA consider Xbox Game Pass and GeForce Now similar services, That’s great news for Redmonds.since they thus avoid the consideration of monopolistic practices.