Microsoft has signed a binding 10-year agreement with Nintendo that guarantees Call of Duty games will be available on Nintendo consoles on the same day they launch for Xbox, the company said.
Deal intended to address antitrust concerns
Microsoft announced the pact as part of efforts to demonstrate that its planned US$69 billion acquisition of Activision Blizzard would not harm competition in the gaming market. The announcement came on the day Microsoft attended a hearing with the European Union’s antitrust regulator regarding the acquisition.
Regulatory pushback leading up to the agreement
U.S. regulators have already challenged the takeover. In December, the Federal Trade Commission (FTC) said the acquisition would disadvantage Microsoft’s rivals.
The European Competition and Markets Authority (CMA) raised similar concerns: earlier this month it proposed either removing Call of Duty from the acquisition or requiring a partial divestiture of Activision Blizzard.
Microsoft frames the deal as expanding access
Microsoft framed the contract with Nintendo as part of a broader commitment to make Xbox and Activision titles available on more platforms. Brad Smith, president of Microsoft, said the company had “now signed a binding 10-year agreement to bring Xbox games to Nintendo players” and described it as part of the commitment to bring Activision titles such as Call of Duty to more players on more platforms.
Previous offers and reactions
In December, Phil Spencer, head of Microsoft’s Xbox division, had said the company would make Call of Duty available to Nintendo. Microsoft also offered a similar deal to Sony, but PlayStation CEO Jim Ryan rejected that offer, calling it “inadequate in many respects.”
Why Call of Duty matters to regulators
Regulators have focused on Call of Duty’s popularity as the key issue: they argue that granting Microsoft ownership of the franchise could give Microsoft an outsized advantage over competitors. Microsoft states the new agreement underscores its intention to preserve access to the franchise for rivals including PlayStation and Nintendo.
