Microsoft enters 10-year agreement to keep Call of Duty on PlayStation

Microsoft Gaming CEO Phil Spencer announced that the company had reached an agreement to ensure that the popular video game franchise Call of Duty will continue to be available on PlayStation consoles. The announcement comes after Microsoft got a green-lit for the $69 billion acquisition of Activision Blizzard, the publisher behind the Call of Duty series.

The Federal Trade Commission (FTC) had previously raised concerns that Microsoft's control over Activision Blizzard could result in anti-competitive practices, affecting consumers who play video games on consoles or subscribe to gaming services.

According to the FTC, Microsoft's increased market power would incentivise the company to exclude rivals such as Sony Group, the parent company of PlayStation, from accessing Call of Duty and other popular titles. This exclusion could limit consumer choice and hinder competition in the gaming market.

To address these concerns, Microsoft has agreed to license the Call of Duty franchise to competitors. As part of this effort, Microsoft has secured a 10-year contract with Nintendo, contingent on the successful completion of the merger. The agreement ensures that Call of Duty games will be available on Nintendo's gaming platforms for the foreseeable future. Microsoft has inked a similar deal with Sony for the PlayStation.

"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 favourite games," Spencer tweeted.

Microsoft's acquisition of Activision Blizzard is one of the largest deals in the gaming industry's history.