Following a fierce battle between Microsoft and Sony over the Activision Blizzard deal, it seems that the two companies have finally reached an agreement.

Microsoft has announced that Sony has finally signed a binding agreement to keep Call of Duty on PlayStation. The surprise announcement came amid a battle with the FTC. Microsoft is aggressively pushing to finalise the acquisition. While not all the deal’s specifics are known, it will likely be the biggest hurdle to the Activision buyout.

In recent months, Microsoft has been seeking long-term deals with several game industry players to win regulatory favours.

It has signed ten-year contracts with companies such as Nvidia, Boosteroid, Nintendo and Ubitus. Meanwhile, regulators and rival companies such as Sony have raised their voices about Activision’s Blizzard deal. Microsoft has publicly offered a similar ten-year deal to Sony. They promised to keep franchises such as Call of Duty on PlayStation. But the Japanese company refused to sign the agreement and remained vocally opposed to the impending acquisition.

Now, in a surprise announcement, Xbox chief Phil Spencer has said that Microsoft has entered into a binding agreement with PlayStation to keep Call of Duty on the platform following Activision’s acquisition of Blizzard. The agreement could be similar to the previous ten-year deals Microsoft has signed, although details are not yet known. However, the Xbox manufacturer may likely have included some exclusive commitments to Sony. Especially after the recent heated debate between the two companies over the acquisition.

Sony has previously complained that Microsoft’s Call of Duty offer could “irreparably harm competition” and that the company could even sabotage PlayStation versions.

The deal comes at an exciting time. The court rejected the FTC’s request to block Activision’s Blizzard deal. Another rejection followed this in the Court of Appeal. The regulator appealed the decision and requested an emergency injunction to block the acquisition. This meant that Microsoft could close the Activision Blizzard deal on time, before the 18 July deadline, without paying the $3 billion fee.

Although the two companies may renegotiate terms, the signing of the agreement between Sony and Microsoft indicates that the acquisition is likely to close soon.

However, it should be noted that a regulator is still a challenge for Microsoft. After the pending acquisition was initially blocked by the UK CMA, Microsoft and Activision Blizzard appealed the decision hoping to reverse it. However, following the FTC’s decision, the CMA and Microsoft agreed to pause the legal proceedings to reach an agreement.

Source: Twitter

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 favorite games.

— Phil Spencer (@XboxP3) July 16, 2023