Firm makes fresh offer to acquire Activision after the UK competition watchdog rejected its first bid.
Under the revised deal, Microsoft said that instead of controlling all of Activision's games, which also include Candy Crush, the content would be sold to rival video game publisher Ubisoft.
Mr Smith said the deal had been "a longer journey than expected", but under the new terms he said: "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."
Rivals such as Sony have also objected to the deal, concerned that Microsoft could stop major games being available to its own PlayStation business.
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