Sony signs 10-year deal with Microsoft to keep ‘Call of Duty’ on Playstation

Microsoft and Sony have signed a 10-year “binding agreement” to keep Call of Duty on PlayStation following the Xbox maker’s acquisition of Activision Blizzard as confirmed by Microsoft Gaming CEO Phil Spencer.

The announcement which was tweeted on July 16 by Xbox chief Phil Spencer indicates the Japanese company is no longer fighting the $69 billion takeover. This ends a bitter battle between the companies that has been waged both privately and publicly over the past year after Microsoft announced its proposed acquisition of Activision Blizzard in January 2022.

The tweet read;

“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. We look forward to a future where players globally have more choice to play their favourite games,” Microsoft Gaming CEO Phil Spencer.

Just so you know, Microsoft offered to acquire Activision Blizzard for $69 billion. But 18 months after the announcement, that acquisition hasn’t closed as several competition regulators have been concerned about the consequences on the gaming market.

Call of Duty which is considered Activision Blizzard’s crown jewel has been the biggest point of contention for gaming companies like Sony and regulatory bodies in the US, the UK, and the European Union. But Microsoft, for its part, has time and again tried to downplay the deal’s significance to the gaming industry to push it through.

“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,” Microsoft Vice Chair and President Brad Smith also wrote on Twitter.

Microsoft’s original offer to Sony in January 2022 included keeping all existing Activision console titles on Sony, including future versions in the Call of Duty franchise or any other current Activision franchise on Sony through December 31st, 2027. The terms of the deal have clearly changed since that opening offer, with an extension of 10 years that’s limited to just Call of Duty.

Read also: Microsoft threatens to walk away from $70 billion Activision Blizzard deal

Deal keeps Call of Duty on consoles for 10 years

Activision is the maker of the best-selling Call of Duty lineup. Regulators around the world had expressed significant concern about Microsoft’s power over the gaming market if an Activision acquisition was approved.

Microsoft is the manufacturer of the Xbox, which competes directly with Sony’s PlayStation, prompting fears that Microsoft would be able to make games “exclusive” to its own consoles and displace Sony from the competition.

Sony has been reluctant to sign an agreement with Microsoft as the PlayStation maker hoped that authorities would block the acquisition of Activision Blizzard altogether. The deal comes after months of offers and counteroffers over the past 18 months between Microsoft and Sony over the future of Activision content on PlayStation.

During the FTC v. Microsoft hearing, it was also revealed that an August 26th email from Xbox chief Spencer to PlayStation chief Ryan included a list of Activision games that would remain on PlayStation, and Ryan wasn’t happy:

“It was not a meaningful list. This list represented a particular selection of older titles that would remain on PlayStation, for example, Overwatch is on there but Overwatch 2 is not on there, the current version of the game.

Ryan

While Microsoft’s initial announcement doesn’t mention 10 years for Call of Duty on PlayStation, Kari Perez, head of global communications at Xbox, confirmed the 10-year commitment to The Verge. Perez later confirmed that the deal is only for Call of Duty, though. That makes the deal similar to a 10-year agreement between Microsoft and Nintendo, but not the various deals Microsoft has struck with Nvidia and other cloud gaming platforms to bring Call of Duty and other Xbox / Activision games to rival services.

Last week, a federal judge denied a preliminary injunction request from the Federal Trade Commission (FTC). If Microsoft can find some form of resolution with the CMA, that court order should likely clear the way for the acquisition.

That’s likely why Sony changed its stance on a COD deal. There should be more news from Microsoft, the FTC and the CMA in the coming days.