Microsoft Gaming CEO Phil Spencer announced on Sunday that Microsoft has reached an agreement to keep the popular video game franchise Call of Duty on PlayStation following its acquisition of Activision Blizzard. This move aims to address concerns surrounding the impact of the acquisition on competition within the gaming industry.
Microsoft’s Pledge to Consumers
In a tweet, Microsoft President Brad Smith expressed the company’s commitment to expanding Call of Duty’s availability on multiple platforms and to a larger consumer base. Smith stated, “Even after the completion of this deal, our focus will remain on ensuring that Call of Duty remains accessible to more consumers than ever before.”
The FTC’s Concerns and Microsoft’s Response
The Federal Trade Commission (FTC) had raised concerns that the acquisition would harm consumers, regardless of whether they played video games on consoles or had subscriptions. The worry was that Microsoft would have an incentive to exclude rivals like Sony Group.
To address these concerns, Microsoft had previously agreed to license Call of Duty to competitors, including a 10-year contract with Nintendo. This agreement was contingent upon the completion of the merger. The purpose of these licensing deals was to alleviate the fears of the FTC and maintain healthy competition within the gaming industry.
Expanding Partnerships and Global Reach
Microsoft’s initial announcement of the Activision bid in January 2022 revealed its intention to compete with rivals Tencent and Sony through this acquisition. Both companies had already signed 10-year licensing deals to bring Call of Duty to their respective gaming platforms, pending approval of the Activision deal.
In addition to the commitment to PlayStation, Microsoft has also formed a 10-year partnership with Spain’s Nware. This partnership aims to bring Xbox and Activision Blizzard games to Nware’s Spanish cloud-gaming platform, further expanding the availability of these popular games to players around the world.
It is worth noting that several countries, including Brazil, Chile, Serbia, and Saudi Arabia, have already granted unconditional approval for the Activision Blizzard acquisition by Microsoft.
By making this commitment to keep Call of Duty on PlayStation, Microsoft is demonstrating its dedication to fostering competition, ensuring consumer access to popular games, and expanding partnerships to reach players in various regions. This decision highlights Microsoft’s strategic approach to the acquisition and its commitment to the future of the gaming industry.
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