Microsoft, Sony agree to keep Call of Duty on PlayStation
Microsoft and Sony are bitter rivals in the world of gaming. That rivalry has been one of the main reasons that delayed Microsoft's $69 billion acquisition of Call of Duty-maker Activision Blizzard. As Microsoft inches close to completing the purchase, the two have agreed to a 10-year deal to keep Call of Duty on PlayStation. Microsoft has a similar agreement with Nintendo and NVIDIA.
Why does this story matter?
Microsoft announced the acquisition of Activision in January 2022. Sony has been a staunch opponent of the merger. The Japanese giant claimed that the acquisition was anti-competitive and tried its best to stop it from happening. However, with the deal receiving approval from most regulators worldwide and Microsoft winning its court battle against the FTC, Sony seems to have come to terms with it.
The deal does not include other Activision titles
Phil Spencer, CEO of Microsoft Gaming, announced that his company and Sony "have signed a binding agreement to keep Call of Duty on PlayStation following the acquisition of Activision Blizzard." The deal will be for 10 years. It, however, does not include other Activision games. Microsoft's previous offer to Sony included all Activision titles, including future updates of Call of Duty and other franchises.
Email reveals Sony wasn't worried about Call of Duty's exclusivity
Microsoft first made an offer to Sony in December 2022. However, the company kept rejecting Microsoft's advances. Sony maintained that Microsoft could make Call of Duty an Xbox exclusive or sabotage the game's PlayStation versions. However, an email from PlayStation chief Jim Ryan read out during the FTC v/s Microsoft trial revealed that he wasn't really worried about the game becoming Xbox exclusive.
Microsoft's next challenge is UK's CMA
With the most bitter opponent of the deal on its side, Microsoft would be hoping to close the acquisition as soon as possible. The company's next challenge is UK's Competition and Markets Authority (CMA). The two have agreed to pause their legal battles to negotiate how to modify the transaction to address CMA's cloud gaming concerns. Meanwhile, CMA extended its investigation into the deal.
FTC lost to Microsoft twice
The agreement with Sony follows a win in the court battle against FTC, another vocal opponent of the merger. The US competition watchdog's attempt at blocking the deal wasn't successful after a court denied its request for a preliminary injunction. FTC appealed the court's decision. However, the appeal court also denied its request for emergency relief.
