They just agreed...

Microsoft and Sony have just signed an agreement to keep the multi-billion dollar Call of Duty franchise on PlayStation consoles after a months-long dispute over Activision Blizzard's proposed acquisition. "We are pleased to announce that Microsoft and PlayStation have signed a binding agreement to keep Call of Duty on PlayStation even after the acquisition of Activision Blizzard," tweeted Phil Spencer, director of Microsoft Gaming, on Sunday morning.

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.

— Phil Spencer (@XboxP3) July 16, 2023

The announcement came last Sunday, just two days after Microsoft cleared the final hurdle on its $68.7 billion takeover of Activision Blizzard. Indeed, the Ninth Circuit Court of Appeals rejected the decision of the US Federal Trade Commission, which temporarily prohibited the continuation of the business in the US. The only regulator currently opposed to the merger is the UK's Competition and Markets Authority (CMA), but it recently agreed with Microsoft to end the legal battle and instead negotiate a compromise.

"Since day one of the acquisition, we have committed to consider the concerns of regulators, platform and game developers, and consumers," Microsoft president and vice president Brad Smith responded to Spencer's post on Twitter. "Even as we cross the finish line to approve this deal, we will remain focused on ensuring Call of Duty continues to be available on multiple platforms." Spencer did not disclose the terms of the deal between Microsoft and Sony, but Axios' Stephen Totilo said the deal is for 10 years. Microsoft offered Sony a ten-year contract to keep Call of Duty on current and future PlayStation consoles late last year, but the Japanese electronics giant turned it down at the time. In order to secure approval from regulators, including the FTC and CMA, Microsoft then signed an agreement with Nintendo to bring the series to the company's future consoles. It has also made arrangements with cloud gaming providers such as NVIDIA.

And why was Sony against it? Jim Ryan, chairman and CEO of Sony Interactive Entertainment, was clear: “I don't want a new deal for Call of Duty. I just want to block your merge. I believe the transaction is anti-competitive and I hope regulators do their job and block it.' he told Activision CEO Bobby Kotick. But that didn't happen, so Sony probably had no choice but to swallow the bitter pill and make a deal.

The CEO of SIE answered that question in Brussels.

In his words:

"I don't want a new Call of Duty deal. I just want to block your merger."

— Lulu Cheng Meservey (@lulumeservey) March 8, 2023

▪

AI translated