Microsoft’s Acquisition of Activision Blizzard: Sony’s Objections and 10-Year Deal for Call of Duty Series

Microsoft has been trying to finalize the acquisition of Activision Blizzard for a long time. Many obstacles stood in the way of the Redmond giant, including Sony’s objections to the Call of Duty franchise and its availability on PlayStation consoles. The companies have finally reached an agreement on this matter.

Sony agreed to sign with Microsoft a 10-year deal for the Call of Duty series of games. This document is to ensure the availability of the title on the platform PlayStation after the US company takes over Activision Blizzard. CEO of Microsoft Gaming (Phil Spencer) says that Sony i Microsoft they agreed to “binding contract”To preserve Call of Duty on Japanese consoles. This event ends a major battle between the companies that has been going on since Microsoft announced its planned acquisition of Activision Blizzard in January last year.

Batalia Sony i Microsoft o Activision Blizzard

Interestingly, the original offer Microsoft For Sony (dated January 2022) included the behavior of “all existing Activision titles for Sony consoles, including future versions of the Call of Duty series or any other current franchise (…) until December 31, 2027.”. Apparently, the Japanese giant did not like such conditions and started a large-scale battle in which they tried to stop the potential merger at all costs.

Sony has repeatedly raised concerns with regulators about the fact that Microsoft can do Call of Duty console-only series Xbox and/or sabotage the intended version of the game PlayStation. From the interrogations Federal Trade Commission (FTC) we learn that Phil Spencer repeatedly sent to Jim Ryan proposals for offers regarding the availability of titles Activision Blizzard. One of them died on August 26 and the head of the department PlayStation he wasn’t happy with it:

It wasn’t a sensible list. The listing mainly featured older titles that would remain on the PlayStation. For example, Overwatch was included, but Overwatch 2, the current version of the game, was no longer there.

This email apparently led to a breakdown in communication between Spencer i Ryanem. Just a few days after sending this message to Sonyboss Xbox he said The VergeThat Call of Duty stay on PlayStation “for at least a few years longer than Sony’s current contract”. Ryan he wasn’t happy with that Spencer makes the contract negotiations public and said the offer was “inadequate on many levels and did not address our players’ needs”.

Ryan then he also added that “he wasn’t going to comment on what I thought was a private business discussion, but I feel the need to clarify the matter because Phil Spencer made it public.”.

Sony and the fight for independence Activision Blizzard

Tensions surrounding the fate of the deal Microsoft z Activision Blizzard reached its climax when Jim Ryan spoke to the CEO of Activision (Bobby Kotick) February 21, 2023. Exactly the same day that Microsoft, Activision, Sony met with EU regulators.

Ryan then said to Kitty: “I don’t want a new Call of Duty deal. I just want to block yours [z Microsoftem] merger!”. Jim Ryan while testifying at the trial FTC against Microsoft added: “I told him [Bobby’emu Kotickowi]that I consider the transaction to be anti-competitive. I was hoping regulators would do their job and block it.”. Kotick apparently he had other plans for the meeting. He probably wanted to have security in the form of a long-term contract for the Call of Duty series with Sony in case the Microsoft deal did not go through. At the same time, Microsoft boasted about the contract to the world media, trying to encourage Sony to sign the contract. Microsoft has repeatedly guaranteed that it will keep the series Call of Duty on consoles PlayStationarguing that it makes no (financial) sense to cut off consoles Sony from this franchise.

Microsoft is trying to convince the British to accept the merger

All eyes are now on the regulatory situation in the UK, after Microsoft’s proposed deal was blocked there earlier this year. The Redmond giant is attending a conference in Britain tomorrow Competition Appeals Tribunal (CAT) along with Office for Competition and Markets (MOTH). The conference has been called “in order to consider a joint request by all parties to adjourn proceedings pending further discussions between the CMA and Microsoft”.

Both CMAWhat Microsoft agreed earlier this week to put their legal battles on hold to negotiate how the deal could be modified to address objections CMA (related to cloud games). Office for Competition and Markets also warned earlier this week that Microsoft’s proposals could “bring to a new merger investigation” and that talks with the US company are at an early stage.

There are many analyzes on the web about the merger between Microsoft and Activision Blizzard

Mimo that CMA issued a notice of extension of the general investigation into the agreement, moving final order date from July 18 to August 29. However, Microsoft hopes to close the deal with Activision before the first deadline. It is more likely that you will need to set yourself up for the latter date to be able to resolve the dispute in the UK.

What do you think about the acquisition of Activision Blizzard by Microsoft? Is Sony doing the right thing by only securing the Call of Duty franchise ownership guarantees for these 10 years? Welcome to the poll and comment section!

Source: The Verge

2023-07-16 21:57:00
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