Unprecedented Collaboration: Sony and Microsoft Announce Groundbreaking Call of Duty Deal

Sony has finally entered into a binding agreement with Microsoft, as announced by the latter. The surprising announcement comes amidst the FTC's struggle to halt the Activision Blizzard deal, while Microsoft is aggressively pushing for its acquisition. Although the specifics of the Sony and Microsoft agreement are yet to be revealed, this deal signifies the probable end to one of the major obstacles to the Activision purchase.

In recent months, Microsoft has been actively pursuing long-term agreements with various stakeholders in the gaming industry, aiming to gain regulatory support. Among its achievements, Microsoft has secured 10-year deals with notable entities like Nvidia, Boosteroid, Nintendo, Ubitus, and others. This move was strengthened by the growing concerns voiced by regulators and rival companies like Sony regarding the Activision Blizzard deal. Despite offering a similar 10-year agreement to Sony, ensuring franchises like Call of Duty remain on PlayStation, the company initially declined to sign the deal and continued to openly oppose the impending acquisition.

In a surprising announcement, Xbox chief Phil Spencer revealed that Microsoft and PlayStation have reached a binding agreement to retain Call of Duty on the platform after the Activision Blizzard acquisition. While the specifics remain undisclosed, the agreement could resemble Microsoft's previous 10-year deals. It is speculated that Microsoft may have included exclusive commitments to Sony, considering the recent intense rivalry between the two companies regarding the acquisition. Previously, Sony raised concerns that Microsoft's Call of Duty offer could harm competition and even sabotage PlayStation versions.

This agreement arrives at a notable moment, as the Federal Trade Commission's attempt to block the Activision Blizzard deal was rejected. Subsequently, the Ninth Circuit Court of Appeals denied the regulator's appeal and emergency request to halt the acquisition. As a result, Microsoft was able to finalize the Activision Blizzard deal before the July 18 deadline without incurring the $3 billion fee. Although there may be further negotiations between the two companies, the agreement between Sony and Microsoft suggests that the acquisition will soon conclude.

However, it is worth mentioning that Microsoft still faces a hurdle from one regulator. When the UK's CMA initially blocked the pending acquisition, Microsoft and Activision Blizzard decided to appeal the decision in an attempt to overturn it. However, after the FTC ruling, the CMA and Microsoft agreed to temporarily halt legal proceedings to reach a resolution. Currently, both parties are scheduled to meet in a case management conference at the UK’s Competition Appeal Tribunal. Now, all attention is focused on the CMA, as it stands as the sole opposition to Microsoft's proposed purchase of Activision Blizzard.