Microsoft (MSFT) and Sony (SNE) have inked a contract to assure that “Call of Duty” would continue to be available on PlayStation after Microsoft (MSFT) completes the $69 billion merger with Activision Blizzard (ATVI), the tech giant announced on Sunday.
The agreement might put an end to Sony’s long-standing accusations that the merger, which would elevate Microsoft to the third-largest video game publisher in the world, will undermine the market for video games. A request for comment from Sony did not immediately receive a response.
The CEO of Microsoft’s Xbox, Phil Spencer, tweeted, “We are pleased to announce that Microsoft and @PlayStation have signed a binding agreement to keep Call of Duty on PlayStation following the acquisition of Activision Blizzard.” We anticipate a time when gamers everywhere will have additional options for playing their favorite games.
One of the most vocal opponents of the deal had been Sony. Microsoft might be able to get over any remaining objections to the deal and bring it to a successful finish if it can address the company’s concerns about the continued availability of “Call of Duty,” one of the most well-known franchises in the business.
Microsoft had already signed multi-year licensing agreements with rival firms like Nintendo and Nvidia, among others, to ensure Microsoft would not be able to impose restrictions on Activision titles from users of those companies’ platforms and consoles. This was done in response to competition concerns from regulators around the world.
According to Microsoft spokesperson Kari Perez, the agreement with Sony would endure ten years.
Microsoft President Brad Smith tweeted, “From Day One of this acquisition, we’ve been committed to addressing the concerns of regulators, platform and game developers, and consumers.” “Even after we cross the finish line for this deal’s approval, we will remain focused on making sure that Call of Duty remains accessible to more platforms and customers than ever before,” the statement continued.
Microsoft executives, including CEO Satya Nadella, testified at a five-day hearing last month in federal court that games like “Call of Duty” would not be prohibited from rivals after the deal’s closing.
US District Judge Jacqueline Scott Corley stated in her ruling last week that the US government had “not shown it is likely to succeed on its assertion that the combined firm will probably pull Call of Duty from Sony PlayStation, or that its ownership of Activision content will substantially lessen competition in the video game library subscription and cloud gaming markets.”
The merger between Microsoft and Activision must be completed by the contractual deadline of July 18; however, the two corporations may agree to extend the deadline.
A federal district court and a US appeals court this week both declined to temporarily halt the merger from taking place, giving Microsoft two triumphs in a row. The deal, which regulators claimed would allow Microsoft to withhold “Call of Duty” and other well-known titles from competing consoles and cloud gaming services, had been the subject of the Federal Trade Commission’s argument that a preliminary injunction was required to stop video game consumers from being immediately harmed by the deal.
