- Reportedly, the expanded blockchain solution seeks to introduce a financial system of record.
- The expanded solution will help speed up contract digitisation for swift contract creation.
- Users will benefit from transparency and near real-time calculation of royalty payments.
Ernst and Young (EY) and Microsoft have come together to announce that they have expanded the Xbox Enterprise platform, Microsoft’s blockchain-based solution for gaming rights and royalties management. A news release unveiled this news on December 14, noting that this expansion seeks to provide a financial system of record, which ranges from content creation to payment and reconciliation.
According to the press release, Microsoft seeks to use the expanded blockchain functionalities to offer its Xbox gaming partners, its network of artists, and musicians among other content creators visibility into tracking, management, and payment processing for royalty contracts. Ernest and Young, on the other hand, aims to help its business-to-business enterprise clients who have contractually-driven multiparty cash flow distributions to develop similar blockchain platforms, which will help them automate contract-associated calculations and processing.
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Commenting on this development, Microsoft’s General Manager of Global Finance Operations, Luke Fewel, said,
“In this go-live, we successfully generated the first round of partner payments utilizing blockchain and smart contract technology. This expanded solution will help streamline financial and operational processes with the ability to scale, reduce heavy manual overhead and improve the experience for Microsoft’s gaming partners. We look forward to continuing to scale this solution across our royalties ecosystem — improving our processes and the continuation of our modern finance journey.”
Minimising the processing time for royalties
Per the publication, the expanded solution will offer Microsoft multiple benefits. These include,
- Accelerating contract digitization for faster contract creation using AI, based on Microsoft Azure.
- Generating and integrating statements and invoices with enterprise resource planning (ERP) applications, a move that will record royalties with more speed and enhanced visibility and transparency.
- Creating accounting entries from the blockchain platform into existing ERP applications, boosting efficiency and accounting capabilities.
- Integrating the controls and compliance standards needed to meet the criteria for the solution to work as a financial record system.
Apart from the above perks, the solution will also minimise processing time by 99%. It will also offer 100% near real-time calculation of royalties using digital contracts across development partners. Reportedly, the blockchain application has been tested to support high performance under a volume influx. Per the press release, the application can process 2 million transactions in a day.
Through these improvements, the expanded blockchain platform will help enhance the end-to-end royalties experience by leveraging the benefits of Microsoft’s gaming ecosystem. As such, the network’s partners will enjoy earlier visibility and availability of data in statements and invoices, all from a single source, the Microsoft rights and royalties blockchain.
Dave Padmos, the leader of EY America’s Technology, Media & Entertainment, and Telecommunications, said,
“This blockchain platform and royalties solution represents one of the world’s leading blockchain-based financial systems of record, taking advantage of blockchain technology in a big way. The ability to maintain trusted data with near real-time transparency, combined with the flexibility of an application-specific platform, can deliver immediate business value by reducing cost and improving trust. We expect that this will continue to be a notable trend and growing need across all industries. The collaboration between EY and Microsoft is another step in our alliance as we team to develop transformative solutions that enable organizations to become adaptive digital enterprises that apply innovative technologies to deliver immediate and long-term value.”
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