Sony and Microsoft Sign Agreement to Keep Call of Duty on PlayStation After Activision Blizzard Acquisition

Sony and Microsoft have reached a binding agreement to keep the popular video game franchise Call of Duty on PlayStation consoles following Microsoft’s acquisition of Activision Blizzard. The announcement was made by Microsoft Gaming CEO Phil Spencer on Twitter.

The deal comes after concerns were raised by regulators around the world about Microsoft’s potential dominance in the gaming market if the Activision acquisition went through. Microsoft manufactures the Xbox, a direct competitor to Sony’s PlayStation, leading to fears that Microsoft would make games exclusive to its own consoles and push Sony out of competition.

While the duration of the agreement has not been disclosed, a Microsoft spokesperson confirmed that it is a long-term deal. Microsoft has previously signed similar agreements in the past.

Sony’s CEO of interactive entertainment division, Jim Ryan, expressed anti-competitive concerns about the proposed Activision Blizzard acquisition in a videotaped testimony last month. He believed that the deal would not be beneficial for competition.

Microsoft vice chair Brad Smith reassured fans on Twitter that even after the potential deal closes, Microsoft will focus on ensuring that Call of Duty remains available on multiple platforms for a wider range of consumers.

The acquisition is not yet certain to close, but the prospects for Microsoft and Activision have improved after a federal appeals judge prevented the Federal Trade Commission from temporarily blocking the deal. The FTC had sued to stop the acquisition, but failed to convince the judge that it posed a significant anti-competitive risk.

Regulators in the European Union approved the deal in May. The UK’s Competition and Markets Authority, known for blocking previous tech deals, has expressed its willingness to negotiate with Microsoft over the terms of the acquisition.

Both companies aim to complete the transaction by Tuesday, July 18.

How has the recent agreement between Sony and Microsoft ensured the availability of Call of Duty on PlayStation consoles after Microsoft’s acquisition of Activision Blizzard?

Sony and Microsoft have come to an agreement to ensure that the popular video game franchise Call of Duty will continue to be available on PlayStation consoles, even after Microsoft’s acquisition of Activision Blizzard. The announcement was made by Phil Spencer, CEO of Microsoft Gaming, on Twitter.

This deal was reached in response to concerns raised by regulators worldwide about Microsoft’s potential dominance in the gaming market if the Activision acquisition were to go through. Because Microsoft manufactures the Xbox, a direct competitor to Sony’s PlayStation, there were worries that Microsoft would make games exclusive to its own consoles, effectively eliminating Sony as a competitor.

Although the duration of the agreement has not been disclosed, a Microsoft spokesperson confirmed that it is a long-term deal. Microsoft has previously entered into similar agreements in the past to ensure accessibility across platforms.

Jim Ryan, CEO of Sony’s interactive entertainment division, expressed concerns about the proposed Activision Blizzard acquisition in a videotaped testimony last month, citing anti-competitive reasons for his skepticism. He believed that the deal would not be beneficial for competition.

However, Microsoft’s vice chair, Brad Smith, took to Twitter to reassure fans that even if the deal were to close, Microsoft would focus on making sure Call of Duty remains available on multiple platforms to cater to a wider range of consumers.

The acquisition has not yet been finalized, but the outlook for Microsoft and Activision has improved since a federal appeals judge prevented the Federal Trade Commission from temporarily blocking the deal. The FTC had sued to halt the acquisition, but failed to convince the judge that it posed a significant anti-competitive risk.

In May, regulators in the European Union approved the deal, while the UK’s Competition and Markets Authority (CMA), which has previously blocked tech deals, expressed its willingness to negotiate terms with Microsoft regarding the acquisition.

Both Sony and Microsoft intend to complete the transaction by Tuesday, July 18.