Microsoft has just announced that Sony has finally come to their senses and signed a binding agreement to keep Call of Duty on PlayStation.
The surprising announcement comes as the FTC has failed to halt the Activision Blizzard acquisition, and Microsoft has started to push for the deal to be finalised.
Currently, the specifics of the Sony and Microsoft agreement aren’t available. Still, it does end one of the most significant industry opposition to the Activision Blizzard acquisition.
Over the last few months, Microsoft has gone on a signing spree and concluded numerous ten-year-long deals promising to either keep or bring Call of Duty to various platforms in an attempt to win over the favour of the government regulators who stood to oppose the deal.
These ten-year deals include Nvidia, Boosteroid, Nintendo, Ubitus and now PlayStation. A Tweet from Xbox chief Phil Spencer confirmed that Microsoft and PlayStation have entered into a legally binding agreement to keep Call of Duty on the platform following the Activision Blizzard acquisition.
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 favorite games.
— Phil Spencer (@XboxP3) July 16, 2023
This agreement comes after the FTC’s request to block the Activision Blizzard deal was denied only to be appealed by the FTC and then denied again by the Ninth Circuit Court of Appeals, where the regulator appealed the ruling.
As of now, Microsoft can close the Activision Blizzard deal before hitting the July 18 deadline and having to foot a $3 billion fine.
It’s worth noting that as of writing, one regulator still poses a challenge to Microsoft. The UK’s CMA initially blocked the acquisition, but following the FTC ruling, CMA and Microsoft agreed to pause legal proceedings to come to an agreement.
However, an agreement is yet to be reached, and the CMA stands as the lone hurdle for Microsoft to overcome.