Microsoft revealed that Sony and Microsoft have reached a legally binding deal for Call of Duty to remain on the PlayStation. The unexpected news comes as Microsoft is working hard to complete the acquisition while the FTC struggles to block the Activision Blizzard transaction. Although the terms of the Sony and Microsoft agreement are yet unknown, the agreement likely signals the end of one of the key arguments against the Activision acquisition.
Microsoft has sought to strike long-term agreements with many gaming industry stakeholders over the past few months to gain regulatory favor. As authorities and competitors like Sony protested the Activision Blizzard deal, Microsoft went on to sign 10-year contracts with businesses including Nvidia, Boosteroid, Nintendo, Ubitus, and a few more.
The business declined to sign the agreement and persisted in its loud opposition to the proposed acquisition, despite Microsoft having publicly offered Sony a similar 10-year pact with the guarantee that franchises like Call of Duty would remain on PlayStation.
Following Activision Blizzard’s acquisition, Xbox head Phil Spencer has now revealed that Microsoft and PlayStation have inked a legally binding deal to retain Call of Duty on PlayStation. Though the terms are currently undisclosed, the pact might be comparable to the prior 10-year contracts that Microsoft has inked.
However, given the bitter dispute between the two firms over the acquisition over the past few months, it’s likely that the maker of the Xbox may have incorporated some exclusive obligations to Sony. Before this, Sony had expressed concern that Microsoft’s Call of Duty offer might “irreparably harm competition” and potentially sabotage the PlayStation versions.
The accord comes at an intriguing moment because the FTC’s plea to stop the Activision Blizzard merger was initially dismissed. The regulator then appealed the decision and asked for emergency relief to stop the purchase, but the Ninth Circuit Court of Appeals again denied the request.
This allowed Microsoft to complete the Activision Blizzard transaction without having to pay the $3 billion fee to meet the deadline of July 18. The signing of an agreement between Sony and Microsoft suggests that the acquisition will probably close soon, even if the two corporations may renegotiate terms.
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