Microsoft Corp. has announced a significant development in its planned acquisition of Activision Blizzard Inc., as it secures a binding agreement with Sony Group Corp. to ensure that the popular Call of Duty franchise remains exclusive to the Playstation platform. This move aims to address regulatory concerns that the merger would result in more Activision games being limited to Xbox.
In a statement shared on Twitter, Microsoft gaming chief Phil Spencer expressed his satisfaction with the agreement, stating, "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." The agreement is set for a period of 10 years, affirming Microsoft's commitment to maintaining the availability of Call of Duty on Playstation.
This announcement comes shortly after Microsoft's 10-year deal with Nintendo Co. Ltd. for Call of Duty was signed last year. With this latest agreement with Sony, Microsoft is solidifying its position and ensuring that the franchise remains accessible to a wide audience, regardless of the platform of choice.
The road to finalizing the merger has seen some challenges, but progress is being made. On Friday, an appeals court denied a Federal Trade Commission bid to halt the acquisition, clearing a major obstacle in the process. However, there is still one significant hurdle remaining - the UK Competition and Markets Authority's concerns about the impact of the merger on the cloud gaming market.
To address these concerns, Microsoft has reportedly offered to sell the cloud-based market rights for games in the UK. This commitment demonstrates Microsoft's willingness to engage with regulators and find suitable remedies. The UK Competition and Markets Authority has given Microsoft a unique opportunity to propose a solution, following its initial rejection of the merger in April.
Overall, Microsoft's binding agreement with Sony regarding the exclusivity of Call of Duty on Playstation is a positive step forward in the acquisition of Activision Blizzard. It not only demonstrates Microsoft's dedication to fostering a diverse gaming ecosystem, but also underscores their commitment to addressing regulatory concerns and ensuring that popular franchises remain accessible to players across various platforms.