- Sony has signed a binding deal with Microsoft to keep the best-selling Call of Duty series available on PlayStation.
- The deal alleviates some concerns that Microsoft will use its power in the gaming market to consolidate its dominance after closing the acquisition of Activision Blizzard.
- Sony executives expressed concerns as recently as last month that the deal could have adverse effects on competition.
Game enthusiasts and industry professionals walk among displays of Microsoft Xbox and Sony PlayStation at the E3 trade show on June 16, 2015 in Los Angeles, California.
Christian Petersen | Getty Images
Microsoft said Sunday that Sony has signed a binding agreement with Microsoft to keep Call of Duty on its PlayStation game consoles after closing its acquisition of Activision Blizzard.
“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,” Microsoft Gaming CEO Phil Spencer He said on Twitter Sunday.
Activision is the manufacturer of the best-selling Call of Duty collection. Regulators around the world have expressed great concern about Microsoft dominating the gaming market if the acquisition of Activision is approved.
Microsoft is the manufacturer of the Xbox, which competes directly with Sony’s PlayStation, which has raised concerns that Microsoft will be able to make games “exclusive” to its consoles and displace Sony from the competition.
The deal does something to alleviate those concerns, though Microsoft and Sony don’t disclose how long the agreement will be. A Microsoft spokesperson indicated that the deal is in place for the long term. The company signed similar deals in the past.
The CEO of Sony’s Interactive Entertainment division, Jim Ryan, shared anti-competitive concerns as recently as last month. Ryan, whose portfolio includes PlayStation, said he believed the proposed acquisition of Activision Blizzard was not good enough to compete in the videotaped June testimony.
Vice President of Microsoft Brad Smith He said on Twitter on Sunday that even after closing a potential deal, Microsoft will “remain focused on ensuring that Call of Duty remains available on more platforms and to consumers than ever before.”
It’s not a certainty that the acquisition will close, though Microsoft and Activision’s prospects are noticeably better after a federal appeals judge blocked the Federal Trade Commission from temporarily blocking the deal. The Federal Trade Commission sued to stop the deal in San Francisco federal court in July but failed to convince a judge that the deal would pose a sufficient risk against competition.
EU regulators signed off on the deal in May. The UK’s Competition and Markets Authority, which has mandated divestments and blocked previous technology deals, said on Wednesday it was ready to negotiate with Microsoft the terms of the deal.
The two companies aim to complete their transactions by Tuesday, July 18.
“Alcohol maven. Evil bacon lover. Wannabe social media geek. Travel guru. Amateur introvert. Pop culture nerd.”