- Microsoft signs a binding agreement with PlayStation to keep Call of Duty accessible on the console amidst its takeover discussions with Activision.
- The deal is aimed at addressing concerns raised by regulators and demonstrates Microsoft’s commitment to fair competition in the gaming industry.
- To ease regulatory worries, Microsoft previously agreed to license “Call of Duty” to competitors, including signing a 10-year contract with Nintendo.
Microsoft’s Commitment to Keep Call of Duty on PlayStation Amid Acquisition Talks with Activision
In a strategic move to gain regulatory approval for its takeover of Activision, Microsoft has reached a pivotal agreement with PlayStation to ensure the popular video game franchise, Call of Duty, remains available on the console. The Telegraph reports that this binding deal is aimed at addressing concerns raised by regulators and ensuring players worldwide have continued access to their favorite games.
Phil Spencer’s Tweet on the Agreement
Phil Spencer, the head of Xbox, which is owned by Microsoft, expressed his enthusiasm for the agreement on Twitter. He stated, “We 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.”
Microsoft’s Commitment to Address Concerns
Brad Smith, the Vice Chairman and President of Microsoft, also emphasized their dedication to addressing regulatory concerns, as well as the interests of platform providers, game developers, and consumers. He stated, “From Day One of this acquisition, we’ve been committed to addressing the concerns of regulators, platform and game developers, and consumers.”
Regulatory Hurdles and Competition Concerns
The $69 billion takeover deal faced scrutiny from England’s Competition and Markets Authority, which expressed concerns about potential increases in game prices and the impact on competition. This regulatory intervention has created uncertainties around the acquisition.
Easing Competition Concerns
The agreement to keep Call of Duty on PlayStation serves as a significant step in alleviating worries surrounding the deal’s potential effects on competition. By ensuring the popular game remains accessible to PlayStation users, Microsoft aims to demonstrate its commitment to fair competition in the gaming industry.
The FTC’s Argument
The Federal Trade Commission (FTC) also voiced apprehensions, asserting that the acquisition might harm consumers, regardless of whether they play video games on consoles or have subscriptions. The FTC feared that Microsoft would be incentivized to limit access to rivals like Sony Group.
Microsoft’s Resolution
To address the FTC’s concerns, Microsoft had previously agreed to license “Call of Duty” to other competitors, including signing a 10-year contract with Nintendo, provided the merger successfully concludes.
By making such commitments, Microsoft aims to bolster its position in the acquisition talks while ensuring that players’ interests are safeguarded and that competition in the gaming industry remains healthy and vibrant.
Published in PakWeb, July 17, 2023.
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