Microsoft and Sony Strike Deal to Keep Call of Duty on PlayStation

After a prolonged and contentious dispute regarding Microsoft’s planned purchase of Activision Blizzard, the company has reached an agreement with Sony to ensure that the Call of Duty franchise remains available on PlayStation consoles. Microsoft Gaming CEO Phil Spencer took to Twitter on Sunday morning to announce the binding agreement, expressing satisfaction with the outcome. Spencer also expressed optimism for a future where players worldwide will have increased options to enjoy their preferred games.

“From day one of this acquisition, we have been committed to addressing the concerns of regulators, platform and game developers, and consumers,” Microsoft president and vice president Brad Smith later tweeted. “Even after we cross the finish line of this deal approval, we will remain focused on making sure Call of Duty is available on more platforms and more consumers than ever before.”

The announcement came after Microsoft on Friday defeated the Federal Trade Commission’s latest attempt to block the company’s $68.7 billion purchase of Activision Blizzard. The Ninth Circuit Court of Appeals refused to grant the regulator an emergency stay on the ruling allowing the trade to proceed in the United States. The UK’s Competition and Markets Authority (CMA) is the last remaining regulator to oppose the buyout, but the watchdog and Microsoft recently agreed to suspend their legal battle over the deal and negotiate a compromise.

Spencer did not disclose the terms of Microsoft’s deal with Sony, including most notably the duration of the deal. Late last year, Microsoft offered Sony a 10-year deal to keep Call of Duty on current and future PlayStation consoles, an olive branch shot back by the Japanese electronics giant. In order to gain approval from regulators, including the FTC and CMA, Microsoft signed a deal with Nintendo to bring the series to the company’s future consoles. It also agreed with cloud gaming providers such as NVIDIA.

Earlier today, Sony Interactive Entertainment CEO Jim Ryan made it clear that he strongly opposes Microsoft’s offer from Activision. “I don’t want a new Call of Duty deal. I just want to block your merger,” Ryan told Activision CEO Bobby Kotick. “I told him [Bobby Kotick] that I thought the deal was anticompetitive and I hoped the regulators would do their job and block it,” Ryan later said while testifying at the FTC v. Microsoft hearing. But once the purchase was ready to go ahead, Sony likely had no choice but to settle with its rival.