Following the termination of the Activision Blizzard purchase, Sony and Microsoft have entered into a legally binding 10-year agreement to guarantee that the well-known video game series Call of Duty would continue to be accessible on PlayStation platforms. Phil Spencer, the CEO of Microsoft Gaming, made the announcement of the partnership on Sunday and was pleased with the teamwork.
Regulators across the globe have been closely monitoring Activision, the maker of the very popular Call of Duty franchise, owing to worries about Microsoft’s potential domination in the gaming industry if the merger were to go through. There were concerns that Microsoft, the maker of the Xbox system, which directly competes with Sony’s PlayStation, might make games exclusive to its own platforms, hurting Sony’s ability to remain competitive.
Although the agreement’s precise length has not been made public, a Microsoft official has indicated that it is meant to be long-term. Microsoft has previously negotiated similar agreements with the goal of addressing anti-competitive issues and ensuring a fair gaming environment.
Jim Ryan, the CEO of Sony’s interactive entertainment division, has expressed his concerns over the planned acquisition of Activision Blizzard, highlighting the possible harm to competition. The recent arrangement between Sony and Microsoft has helped to some extent allay these worries.
Brad Smith, a vice chair at Microsoft, made a point on Twitter of the company’s dedication to keeping Call of Duty available across a variety of platforms in order to appeal to a wider audience of players. This commitment continues even if the purchase agreement ends up being completed.
Although the merger is still not certain, Microsoft and Activision’s chances have increased as a result of a federal appeals judge’s decision to stop the Federal Trade Commission (FTC) from temporarily stymieing the agreement. The FTC attempted to stop the purchase in July by suing in a federal court in San Francisco, but it was unable to persuade the judge of the deal’s serious anti-competitive dangers.
European Union authorities gave the merger its OK in May, and the U.K.’s Competition and Markets Authority said on Wednesday that it would be open to negotiating the acquisition’s conditions with Microsoft. Both businesses are working to complete the deal by Tuesday, July 18.
