What You Missed This Week in Video Games

“Game On” is The Fly’s weekly recap of the stories powering up or beating down video game stocks.

NEW RELEASES: Among this week’s notable new releases are Electronic Arts’ (EA) “Immortals of Aveum,” a first-person fantasy game launching for PC, PlayStation 5 (SONY), and Xbox Series X/S (MSFT) on August 22. Also out this week is Bandai Namco’s (NCBDY) “Armored Core VI: Fires of Rubicon,” a mecha-based combat game developed by “Dark Souls” and “Elden Ring” studio FromSoftware. The game releases August 25 for PC, Xbox One, Xbox Series X/S, PlayStation 4, and PS5.

MICROSOFT RESTRUCTURES DEAL: Microsoft announced that in order to address the concerns about the impact of its proposed Activision Blizzard (ATVI) acquisition on cloud game streaming raised by the U.K. Competition and Markets Authority, it is restructuring the transaction to “acquire a narrower set of rights.” This includes executing an agreement effective at the closing of the merger that transfers the cloud streaming rights for all current and new Activision Blizzard PC and console games released over the next 15 years to Ubisoft Entertainment (UBSFY). The rights will be in perpetuity.

“As a result of the agreement with Ubisoft, Microsoft believes its proposed acquisition of Activision Blizzard presents a substantially different transaction under UK law than the transaction Microsoft submitted for the CMA’s consideration in 2022. As such, Microsoft today has notified the restructured transaction to the CMA and anticipates that the CMA review processes can be completed before the 90-day extension in its acquisition agreement with Activision Blizzard expires on October 18,” the company said in a a blog post. Under the restructured transaction, Microsoft will not be in a position either to release Activision Blizzard games exclusively on its own cloud streaming service – Xbox Cloud Gaming – or to exclusively control the licensing terms of Activision Blizzard games for rival services, the company added.

TENCENT UPGRADE: Last week, Barclays analyst Jiong Shao upgraded Tencent (TCEHY) to Overweight from Equal Weight with an unchanged price target of $50. The company reported “solid” results and its underlying fundamentals “may be even better,” the analyst told investors in a research note. In the past two months, Tencent has launched several major new titles and plans to launch several more during the rest of the year, says the firm, which expects strong gaming growth in the coming quarters and believes Tencent’s advertising growth momentum is likely to continue.

XBOX 360 STORE TO SHUT DOWN: Microsoft announced that, on July 29, 2024, Xbox will stop supporting the ability to purchase new games, DLC, and other entertainment content from the Xbox 360 Store on the console and the Xbox 360 Marketplace. Xbox will stop supporting the ability to purchase new games, DLC, and other entertainment content from the Xbox 360 Store on the console and the Xbox 360 Marketplace. Between now and July 2024, users can continue purchasing games and DLC from the Xbox 360 Store and at the Xbox 360 Marketplace. This change will not affect your ability to play Xbox 360 games or DLC you have already purchased. Xbox 360 game content previously purchased will still be available to play, not only the Xbox 360 console but also Xbox One and Xbox Series X S devices via backward compatibility.

OTHER STORIES TO WATCH:

• Epic Games announced an expansion of crossplay tools (read more)
• Truist lowered its price target on Roblox (RBLX) to $35 from $45 (read more)