/cdn.vox-cdn.com/uploads/chorus_asset/file/23986615/acastro_STK097_01.jpg "Microsoft and Sony Reach a 10-Year Agreement for Call of Duty Partnership")
Sony has reached a 10-year agreement with Microsoft to keep the Call of Duty franchise on PlayStation following the proposed acquisition of Activision Blizzard. Microsoft Gaming CEO Phil Spencer stated that Sony and Microsoft have agreed on a “binding agreement” to ensure Call of Duty remains available on PlayStation. The agreement resolves a longstanding battle between the companies that has taken place privately and publicly since Microsoft announced its intention to acquire Activision Blizzard in January 2022.
Although Microsoft’s initial announcement did not mention a 10-year deal for Call of Duty on PlayStation, Kari Perez, head of global communications at Xbox, confirmed the 10-year commitment. However, Perez clarified that the agreement only applies to Call of Duty and is similar to a previous 10-year deal between Microsoft and Nintendo. This is different from the various agreements Microsoft has made with Nvidia and other cloud gaming platforms to bring Call of Duty and other Xbox/Activision games to rival services.
The terms of the agreement have changed since Microsoft’s initial offer to Sony in January 2022. The original offer included keeping all existing Activision console titles on Sony, including future versions of the Call of Duty franchise, until December 31, 2027. However, the updated agreement now focuses solely on a 10-year extension for Call of Duty.
Sony had initially resisted signing a Call of Duty deal with Microsoft when the company first proposed a 10-year contract in December 2022. Sony expressed concerns that Microsoft might make Call of Duty exclusive to Xbox or potentially harm the PlayStation versions of the game. However, an email from PlayStation chief Ryan, which was revealed during the FTC v. Microsoft hearing, indicated that Sony was actually confident about the continued availability of Call of Duty on PlayStation. The email indicated that Ryan had spoken with Xbox chief Phil Spencer to seek reassurances about Call of Duty.
The agreement between Microsoft and Sony came after months of discussions and counteroffers over the past 18 months regarding the future of Activision content on PlayStation. Tensions escalated when Jim Ryan, CEO of PlayStation, expressed his desire to block the Activision merger during a conversation with Activision CEO Bobby Kotick. Microsoft, on the other hand, was attempting to entice Sony into signing a deal by showcasing a contract to the media.
The regulatory situation in the UK is now a focal point as the proposed Microsoft deal was previously blocked there. Microsoft is participating in a case management conference at the UK’s Competition Appeal Tribunal (CAT) to discuss potential modifications to address the CMA’s cloud gaming concerns. The CMA warned that Microsoft’s proposals might lead to a new merger investigation, and discussions between the CMA and Microsoft are still in the early stages. The CMA has extended its investigation into the deal, with a final order now expected on August 29th. Microsoft hopes to close the Activision deal by the original July 18th deadline but anticipates a small delay for resolution in the UK.