Ubisoft’s side-deal for Activision streaming rights boosts stock price

Ubisoft Entertainment (OTC:UBSFF, EPA:UBI) stock rose more than 9% on Tuesday as the Paris-headquartered game developer agreed a side deal as Microsoft seeks to break the regulatory deadlock in its acquisition of Call of Duty owner Activision.

In the deal, Ubisoft is set to buy out the rights for the cloud-based streaming of Call of Duty and other Activision Blizzard Games.

Ubisoft, in a statement, said it would allow gamers to Stream Activision Blizzard titles via a wide range of subscriptions and services, including the French company’s own Ubisoft+ platform.

Cloud-streaming remains a significant area of interest for consumers and game studios alike, even after Google’s high-profile Stadia flop – the ‘console-less’ gaming platform which came to market with promise and intrigue but was scrapped after failing to capture sufficient market share from the likes of Xbox and Playstation.

Notably, Netflix last week showcased its plans for ‘console-less’ game streaming though the finer details have yet to emerge, beyond the streaming platform’s existing mobile gaming service.

Streaming is attractive to consumers as it allows gamers to play top-tier games without the upfront cost of expensive gaming PCs or consoles like the Playstation or Xbox (which typically cost around $500 apiece).  

The vast majority of computing instead occurs on the cloud, accessed remotely by gamers, however playable performance relies on low latency and high-speed internet otherwise, like Stadia, the playing experience is marred by the ‘lag’ between controller, ‘cloud’, and TV.

Ubisoft’s new deal will give it worldwide rights to Activision Blizzard’s existing titles and those released over the next 15 years, subject to the Microsoft takeover of Activision completing.

“We’re dedicated to delivering amazing experiences to our players wherever they choose to play,” said Chris Early, Ubisoft senior vice president of partnerships and business development.

“Over the past 15 years we’ve built and honed our online services and distribution ecosystem into one of the most complete in the industry.

“Today’s deal will give players even more opportunities to access and enjoy some of the biggest brands in gaming.”

Ubisoft stock is up 9.85% trading at €29.55 per share.