CNN
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Microsoft ( MSFT ) has signed an agreement with Sony ( SNE ) to ensure that “Call of Duty” remains available on PlayStation after Microsoft ( MSFT ) closed its $69 billion Activision Blizzard ( ATVI ) merger, it said on the tech giant Sunday.
The deal could resolve Sony’s long-standing complaints that the merger – which aims to make Microsoft the world’s third-largest video game publisher – threatens competition. Sony did not immediately respond to a request for comment.
“We are pleased to announce that Microsoft and @PlayStation have signed a binding agreement to continue Call of Duty on PlayStation following the acquisition of Activision Blizzard,” said Phil Spencer, head of Xbox at Microsoft, in a tweet. “We look forward to a future where gamers around the world have more options to play their favorite games.”
Sony has been one of the loudest critics of the acquisition. Addressing the company’s concerns about the continued existence of “Call of Duty,” one of the most popular franchises in the industry, will help Microsoft overcome any remaining objections to the deal and bring it to a conclusion.
In response to competition concerns from regulators around the world, Microsoft has signed multiyear licensing agreements with rival companies including Nintendo and Nvidia, among others, to ensure that Microsoft cannot restrict Activision titles from users of platforms and consoles to businesses.
The Sony deal will last 10 years, according to Microsoft spokeswoman Kari Perez.
“From Day One of this acquisition, we have been committed to addressing the concerns of regulators, platform and game developers, and consumers,” said Microsoft President Brad Smith in a tweet. “Even if we cross the finish line for the approval of this deal, we will remain focused on ensuring that Call of Duty remains available on more platforms and for more consumers than ever before.”
During a five-day hearing last month in federal court, Microsoft executives including CEO Satya Nadella testified that assets such as “Call of Duty” would not be restricted from competitors after the deal closed. .
Last week, US District Judge Jacqueline Scott Corley wrote in her opinion that the US government “has not shown that it is likely to succeed in its assertion that the combined company will likely pull Call of Duty from Sony PlayStation, or that its ownership of Activision in a large amount.reducing competition in the video game library subscription and cloud game markets.
Microsoft faces a contractual deadline of July 18 to close the merger with Activision, although the companies may seek to extend that time frame.
Last week, Microsoft won two consecutive court victories when a federal district court and a US appeals court refused to temporarily block the merger from completion. The Federal Trade Commission argued that a preliminary injunction was needed to prevent video game consumers from being harmed immediately by the deal, which regulators said would enable Microsoft to block “Call of Duty” and other popular titles. from competing consoles and cloud gaming services.
