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Sony has seemingly recognized the inevitability of Microsoft’s acquisition of Activision Blizzard going through, and has signed an agreement with4️⃣ Microsoft to keep Call of Duty available on PlayStation for the next 10 years.
The news was announced on Sunday by4️⃣ Microsoft’s gaming head Phil Spencer. “We are pleased to announce that Microsoft and PlayStation have signed a binding agreement to4️⃣ keep Call of Duty on PlayStation following the acquisition of Activision Blizzard,” Spencer tweeted. “We look forward to a future4️⃣ where players globally have more choice to play their favorite games.”
A Microsoft spokesperson subsequently confirmed to The Verge that the4️⃣ deal would last for a term of 10 years, and covers Call of Duty only — not any other Activision4️⃣ Blizzard games. That puts it on a par with agreements Microsoft had previously signed with Nintendo, Nvidia, and others.
Microsoft president4️⃣ Brad Smith also commented, saying, “From Day One of this acquisition, we’ve been committed to addressing the concerns of regulators,4️⃣ platform and game developers, and consumers. Even after we cross the finish line for this deal’s approval, we will remain4️⃣ focused on ensuring that Call of Duty remains available on more platforms and for more consumers than ever before.”
The signing4️⃣ of the deal marks the end of a long stalemate, during which Microsoft made repeated public offers to keep Call4️⃣ of Duty on PlayStation, while Sony dismissed these and instead attempted to use its leverage with regulators to sink Microsoft’sR$68.74️⃣ billion acquisition of Activision Blizzard completely. “I don’t want a new Call of Duty deal. I just want to block4️⃣ your merger,” PlayStation boss Jim Ryan reportedly told Activision executives on the day of a meeting with European Union regulators4️⃣ in February.
PlayStation’s strategy was to use Call of Duty to convince regulators the merger would kill competition in the console4️⃣ market, because Microsoft would withhold the games from PlayStation or release inferior versions there. But this strategy was none too4️⃣ successful. EU regulators were satisfied with the assurances offered by Microsoft, while the U.K.’s Competition and Markets Authority eventually conceded4️⃣ it was in Microsoft’s interest to keep Call of Duty available to PlayStation’s huge audience, and switched tack in its4️⃣ opposition of the deal to concerns around cloud gaming.
Only the U.S. Federal Trade Commission ultimately ran with Sony’s argument, but4️⃣ when its case was tested in court, it lost. Evidence presented in the case included an emailed admission from Ryan4️⃣ that he had no concerns about PlayStation losing access to Call of Duty “for many years to come.”
The signing of4️⃣ the agreement with Microsoft means Sony has effectively ended its opposition to the acquisition, and now expects it to be4️⃣ completed — perhaps as soon as Tuesday, July 18, the deadline by which the deal is supposed to be closed.4️⃣ In theory, two regulators remain opposed to the acquisition. But the FTC has failed to persuade an appeals court to4️⃣ extend an emergency block on the deal, while the CMA has entered into negotiations with Microsoft to find a path4️⃣ forward in the U.K., with an extended deadline of Aug. 29. It’s possible Microsoft and Activision will now extend their4️⃣ own deal deadline to give this process time to complete.
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