After months of intense negotiations, Sony has agreed to a 10-year deal with Microsoft to keep the Call of Duty franchise on PlayStation.
The agreement comes after a bitter battle between the two companies that has been waged both privately and publicly for the past year, following Microsoft's announcement of its proposed acquisition of Activision Blizzard in January 2022.
Microsoft's initial deal offer to Sony in January 2022 included keeping all existing Activision console titles on Sony, including future versions of the Call of Duty franchise and other current Activision titles, through December 31st, 2027.
However, the terms of the deal have changed since then, with an extension to 10 years that's only applicable to Call of Duty.
Sony had initially resisted signing a Call of Duty deal with Microsoft when the company first offered a 10-year contract in December 2022.
The company had expressed concerns that Microsoft could make Call of Duty exclusive to Xbox or even sabotage the PlayStation versions of the game.
The agreement comes after months of discussions and counteroffers between Microsoft and Sony over the fate of Activision content on PlayStation.
Microsoft had waved around a contract in front of the world's media in an attempt to tempt Sony into signing a deal. The two companies finally reached an agreement that ensures that Call of Duty will remain on PlayStation for at least 10 years.
The deal has implications for Microsoft's acquisition of Activision Blizzard.
Microsoft has since agreed to pause their legal battles to negotiate how the transaction might be modified in order to address the Competition and Markets Authority’s (CMA) cloud gaming concerns.
The CMA has warned that Microsoft's proposals may lead to a new merger investigation and that discussions with Microsoft are still in the early stages.
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