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Microsoft has signed a binding agreement to ensure that the Call of Duty video game franchise remains available on Sony’s 📈 PlayStation platform after Microsoft’sR$69bn acquisition of Activision Blizzard, the tech company said on Sunday, easing concerns from Sony and the 📈 Federal Trade Commission (FTC).
A tweet from Phil Spencer, Microsoft Gaming’s CEO, read: “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 📈 look forward to a future where players globally have more choice to play their favorite games.”
In the United States, the 📈 FTC had argued the acquisition deal would hurt consumers whether they played video games on consoles or had subscriptions because 📈 Microsoft would have an incentive to shut out rivals like Sony Group.
However, Judge Jacqueline Scott Corley ruled on 11 June: 📈 “The FTC has not shown it is likely to succeed on its assertion 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.”
To address the FTC’s concerns, Microsoft had agreed to license Call of Duty to rivals, 📈 including a 10-year contract with Nintendo, contingent on the merger closing.
On Sunday, Microsoft did not disclose the duration of the 📈 agreement with Sony.
“From Day One of this acquisition, we’ve been committed to addressing the concerns of regulators, platform and game 📈 developers, and consumers,” said Microsoft’s president, Brad Smith, in a tweet. “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.”
Microsoft has a deadline of 18 July to complete the transaction with Activision Blizzard although both companies 📈 could choose to extend that deadline.
Regulators in the EU had approved the takeover deal in May, a move that drew 📈 immediate protest from the UK counterpart, the Competition and Markets Authority, which had blocked the deal in April. However, the 📈 CMA said on 11 June that it was prepared to negotiate with Microsoft over the deal.
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