Microsoft and Sony have reached a binding agreement to keep the Call of Duty franchise available on PlayStation consoles, Microsoft Gaming CEO Phil Spencer said, resolving a year-long dispute tied to Microsoft’s proposed acquisition of Activision Blizzard.
The companies did not disclose the specific terms of the deal. It is not immediately clear whether the pact follows the model of a 10-year agreement — similar to the deal Microsoft signed with Nintendo and certain cloud gaming partners — or whether it differs in length or conditions.
How the agreement ended months of contention
The announcement concludes a prolonged and often public confrontation between Microsoft and Sony that unfolded after Microsoft proposed to buy Activision Blizzard in January 2022. Negotiations and counteroffers between the two firms continued across roughly 18 months.
Sony had previously declined a 10-year offer from Microsoft in December 2022. In regulatory filings, Sony repeatedly expressed concerns that Microsoft might make Call of Duty exclusive to Xbox or otherwise undermine PlayStation versions of the game.
Those tensions escalated in February 2023 when Sony CEO Jim Ryan spoke with Activision CEO Bobby Kotick on February 21, the same day Microsoft, Activision, Sony and others met with European Union regulators. According to testimony from Ryan in the FTC v. Microsoft hearing, Ryan told Kotick he did not want a new Call of Duty agreement and preferred regulators to block the merger.
Kotick appeared to seek assurances from Sony through a longer Call of Duty agreement in case Microsoft’s acquisition did not go through.
Microsoft’s position and Spencer’s assurances
Microsoft has consistently maintained that keeping Call of Duty on PlayStation makes financial sense and that it would not benefit from removing the franchise from Sony’s consoles. Phil Spencer attempted to settle the dispute in November and reiterated under oath during recent court proceedings that Call of Duty will continue to appear on the PlayStation 5.
Regulatory hurdles remain in the UK
With the Sony-Microsoft agreement announced, attention shifts to the regulatory process in the United Kingdom. Earlier this year, UK authorities proposed blocking Microsoft’s takeover of Activision, and the Competition and Markets Authority (CMA) remains a focal point.
Microsoft and the CMA are due to attend a case management conference at the Competition Appeal Tribunal (CAT) in the UK. The hearing was convened to consider a joint request to pause current proceedings while the CMA and Microsoft hold further talks. Both sides agreed earlier in the week to pause legal battles to explore modifications to the transaction that could address the CMA’s cloud gaming concerns.
The CMA warned that Microsoft’s proposals might prompt a new merger investigation and said negotiations with Microsoft are still at an early stage. Meanwhile, the CMA extended the deadline for its overall inquiry, moving a final order date from July 18 to August 29.
Microsoft is aiming to complete the acquisition of Activision by the original July 18 deadline, though it acknowledged a brief delay is possible to resolve outstanding issues in the UK.
