Microsoft and Sony have reached an agreement to keep the popular Call of Duty video game series on the PlayStation console following Microsoft's acquisition of video game maker Activision Blizzard. The announcement was made by Phil Spencer, the head of Microsoft's Xbox division, in a Twitter post on July 16.
The deal between Microsoft and Sony comes after a period of uncertainty and speculation surrounding the fate of Call of Duty, which has been a subject of competition between the Xbox and PlayStation consoles. Microsoft's planned $69bn purchase of Activision Blizzard raised concerns from Sony, as the company feared losing access to the highly sought-after game title.
To address regulatory concerns and secure approval for the acquisition, Microsoft had previously struck deals with Nintendo and some cloud gaming providers to license Activision titles, including Call of Duty, for a period of 10 years. However, Sony had not yet signed on to the agreement. With the latest development, Sony has now agreed to the deal as Microsoft moves closer to finalizing the buyout.
The news comes shortly after a U.S. appeals court rejected attempts by federal regulators to block Microsoft's acquisition. The court's decision cleared the way for the deal to proceed as planned.
Microsoft's acquisition of Activision Blizzard, announced in January 2022, aims to expand the company's video game imprint beyond the Xbox console. Despite having less market share compared to Sony and its PlayStation device, Microsoft seeks to strengthen its position in the gaming industry with this strategic move.
In the legal dispute over the acquisition, Sony executive Jim Ryan testified before the U.S. Federal Trade Commission, expressing concerns about potential disadvantages to PlayStation players due to Microsoft's control over Call of Duty. Ryan initially had little worry about the deal after conversations with Activision Blizzard CEO Bobby Kotick and Phil Spencer, but later became concerned about the possibility of a "degraded experience" for PlayStation users.
As part of the agreement, Microsoft and Sony have committed to a 10-year deal to ensure the availability of Call of Duty on the PlayStation console. Microsoft president Brad Smith emphasized their commitment to addressing the concerns of regulators, platform and game developers, and consumers. The agreement reflects Microsoft's goal of expanding the reach of Call of Duty to more platforms and consumers in the future.
“Even after we cross the finish line for this deal’s approval, we will remain focused on ensuring that Call of Duty remains available on more platforms and for more consumers than ever before,” president Smith stated.
Microsoft is now racing against time to finalize the acquisition by July 18 to avoid a potential $3bn termination fee.
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