Sony has seemingly recognized the inevitability of Microsoft’s acquisition of Activision Blizzard going through, and has signed an agreement with 🎉 Microsoft to keep Call of Duty available on PlayStation for the next 10 years.
The news was announced on Sunday by 🎉 Microsoft’s gaming head Phil Spencer. “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,” Spencer tweeted. “We look forward to a future 🎉 where players globally have more choice to play their favorite games.”
A Microsoft spokesperson subsequently confirmed to The Verge that the 🎉 deal would last for a term of 10 years, and covers Call of Duty only — not any other Activision 🎉 Blizzard games. That puts it on a par with agreements Microsoft had previously signed with Nintendo, Nvidia, and others.
Microsoft president 🎉 Brad Smith also commented, saying, “From Day One of this acquisition, we’ve been committed to addressing the concerns of regulators, 🎉 platform and game developers, and consumers. Even after we cross the finish line for this deal’s approval, we will remain 🎉 focused on ensuring that Call of Duty remains available on more platforms and for more consumers than ever before.”
The signing 🎉 of the deal marks the end of a long stalemate, during which Microsoft made repeated public offers to keep Call 🎉 of Duty on PlayStation, while Sony dismissed these and instead attempted to use its leverage with regulators to sink Microsoft’sR$68.7 🎉 billion acquisition of Activision Blizzard completely. “I don’t want a new Call of Duty deal. I just want to block 🎉 your merger,” PlayStation boss Jim Ryan reportedly told Activision executives on the day of a meeting with European Union regulators 🎉 in February.
PlayStation’s strategy was to use Call of Duty to convince regulators the merger would kill competition in the console 🎉 market, because Microsoft would withhold the games from PlayStation or release inferior versions there. But this strategy was none too 🎉 successful. EU regulators were satisfied with the assurances offered by Microsoft, while the U.K.’s Competition and Markets Authority eventually conceded 🎉 it was in Microsoft’s interest to keep Call of Duty available to PlayStation’s huge audience, and switched tack in its 🎉 opposition of the deal to concerns around cloud gaming.
Only the U.S. Federal Trade Commission ultimately ran with Sony’s argument, but 🎉 when its case was tested in court, it lost. Evidence presented in the case included an emailed admission from Ryan 🎉 that he had no concerns about PlayStation losing access to Call of Duty “for many years to come.”
The signing of 🎉 the agreement with Microsoft means Sony has effectively ended its opposition to the acquisition, and now expects it to be 🎉 completed — perhaps as soon as Tuesday, July 18, the deadline by which the deal is supposed to be closed. 🎉 In theory, two regulators remain opposed to the acquisition. But the FTC has failed to persuade an appeals court to 🎉 extend an emergency block on the deal, while the CMA has entered into negotiations with Microsoft to find a path 🎉 forward in the U.K., with an extended deadline of Aug. 29. It’s possible Microsoft and Activision will now extend their 🎉 own deal deadline to give this process time to complete.
