Microsoft And Sony Sign Deal To Keep Call Of Duty On PlayStation For 10 Years

The white-hot tussle between Microsoft's Xbox division and Sony's PlayStation arm over the future of "Call of Duty" is finally over. Microsoft's gaming division chief Phil Spencer announced on Twitter that both parties have "signed a binding agreement to keep Call of Duty on PlayStation." The two gaming giants have been locked in a war of words — both publicly and in court — ever since Microsoft announced its plan to acquire Activision Blizzard for $68.7 billion in 2022. The acquisition means Microsoft will get its hands on wild popular and valuable gaming franchises like "Diablo," "Overwatch," and "Warcraft," among others.

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

Sony, however, objected vehemently to the acquisition with one particular Activision property in mind: "Call of Duty." The company argued that the deal gives Microsoft an unfair edge in the gaming market as it could lock these money-printing franchises to its own platform down the road. Sony used the same argument with competition watchdogs and regulators, asking for the acquisition to be blocked. To allay the regulatory concerns, Microsoft cut deals with Nintendo and Nvidia, promising to keep "Call of Duty" on their platforms for at least the next 10 years.

Neither Spencer nor Smith revealed the deal's duration in their respective tweets. However, the head of global communications at Xbox, Kari Perez, confirmed to The Verge that the "Call of Duty" deal spans 10 years, the same as Microsoft's commitment to Nintendo and Nvidia. However, it isn't clear if Microsoft offered any special provisions to Sony given the bitter history.

"We will remain focused on ensuring that 'Call of Duty' remains available on more platforms and for more consumers than ever before," tweeted Microsoft President Brad Smith. Sony originally rejected Microsoft's deal to keep "Call of Duty" on the PlayStation platform for the next decade. In fact, Sony Interactive Entertainment chief Jim Ryan was more concerned with getting the Xbox-Activion deal canceled than accepting Microsoft's deal to keep the hit franchise on PlayStation. 

From Day One of this acquisition, we've been committed to addressing the concerns of regulators, platform and game developers, and consumers. Even after we cross the finish line for this deal's approval, we will remain focused on ensuring that Call of Duty remains available on... https://t.co/hMWjC58wRi

— Brad Smith (@BradSmi) July 16, 2023

"I don't want a new 'Call of Duty' deal. I just want to block your merger," Ryan was quoted as saying by Activision spokesperson Lulu Cheng Meservey. But it appears that both parties have resolved their differences, days after the blockbuster acquisition was finally cleared by the U.S. FTC. 

The saga is far from over for Microsoft, though. The FTC has announced that it will appeal the court's ruling, while Microsoft also quickly announced that it will challenge the regulatory body in its bid to block the deal. The U.K.'s Competition and Markets Authority, on the other hand, has extended the deadline to August 29 to give its verdict on the deal. But now that Sony, the most high-profile opponent of the acquisition, has inked a deal covering the most hotly-contested property, it is quite likely that the U.K.'s competition regulator will also give its nod to the acquisition owing to the dramatically changed circumstances.