Peace at Last: Microsoft and RealNetworks Hug and Make-up

By John Tintle
Contributing Writer, RealTechNews

Today it was announce that Microsoft and RealNetworks have buried the hatched, and are now partners to “innovate and promote consumer choices in digital music and games.”

In actuality there were three agreements between RealNetworks and Microsoft. The first agreement ends all the companies’ antitrust disputes worldwide, the second agreement calls for a digital music collaboration between Microsoft and RealNetworks. This second agreement has Microsoft promoting Real’s Rhapsody® on Microsoft’s properties. The third agreement has RealNetworks offering games through MSN Games and Xbox Live Arcade for Xbox 360.

The total cost to Microsoft for these agreements is estimated to be $761 million dollars.

John’s 2 Cents:
These agreements look like a win-win situation for both companies. RealNetworks get access to millions of Microsoft customers while Microsoft get content that they don’t need to develop. I’m actually surprised this has not happened sooner. Does this mean anything is going to change for me? Nope. I don’t see myself using any RealNetworks programs in the future especially now that they partnered themselves with Microsoft. Lets hear what you have to say.

Alice Adds: Microsoft just messed up negotiations with the major record labels and is suddenly stalled out on developing a music download service. Hmmmmmm.