Ubisoft’s CEO, Yves Guillemot, has expressed his views on the company’s recently unveiled cloud gaming partnership with Microsoft. He believes that while game streaming will require time to gain momentum, it will eventually revolutionize the gaming industry in a manner akin to the transformation brought about by Netflix in the realm of television.
In an interview with The Financial Times (as reported by VGC), Guillemot drew a parallel between the initial skepticism surrounding Netflix’s foray into streaming and the current state of game streaming. He noted that Netflix faced widespread criticism when it initially ventured into streaming but has since become a dominant force in the entertainment industry. Guillemot remarked, “Today we see what they have become. It’s going to be the same with video games but it will take time. But when it takes off, it will happen very quickly.”
Guillemot continued, emphasizing Ubisoft’s belief that over the next five to ten years, a significant number of games will be streamed and even produced in the cloud. This vision drove Ubisoft to enter into its cloud gaming agreement with Microsoft.
Last month, Microsoft revealed its intention to sell cloud streaming rights for Activision’s current and upcoming console and PC games (spanning the next 15 years) to Ubisoft, contingent on the successful completion of Microsoft’s proposed acquisition of Activision Blizzard. This move was a direct response to concerns raised by the UK’s competition regulator, the Competition and Markets Authority (CMA), regarding cloud streaming.
Notably, the CMA recently issued its preliminary approval of Microsoft’s revised deal, affirming that Microsoft’s plan to transfer Activision’s cloud streaming rights to Ubisoft “makes important changes that substantially address the concerns [initially] set out in relation to the original transaction.”
However, the completion of the acquisition is still pending. The CMA has initiated a consultation period for the updated deal, which will run until October 6. With the merger agreement deadline set for October 18, Microsoft faces a tight timeline to ensure the deal’s finalization, unless an extension is granted.
