Sony and Microsoft sign a 10-year Call of Duty on PlayStation deal; in 2022, Microsoft offered to keep “existing Activision console titles on Sony” through 2027

Sony has agreed to a 10-year deal for Call of Duty with Microsoft to keep the franchise on PlayStation after the proposed Activision Blizzard acquisition.

The Verge 2023-07-17 Tom Warren

Context & Ripple Effects

Microsoft’s position evolved from preserving existing Activision console titles on Sony through 2027 to a longer PlayStation commitment. The agreement follows a public dispute over the proposed Activision Blizzard acquisition and mirrors Microsoft’s earlier 10-year Call of Duty commitment for Nintendo consoles.

Microsoft had argued to the UK CMA that 10 years gave Sony time to develop alternatives to Call of Duty; the signed PlayStation agreement turns that proposed duration into a bilateral commercial arrangement.

First-order effects

Sony gains a 10-year contractual basis for Call of Duty to remain available on PlayStation, replacing uncertainty around Microsoft’s longer-term plans for the franchise.
Microsoft gives up the near-term option to make Call of Duty a PlayStation-exclusive lever while pursuing the Activision Blizzard transaction.

Second-order effects

The agreement narrows a central competitive objection to the proposed acquisition, after earlier reporting indicated only short-term commitments for new Call of Duty releases on PlayStation.
With Call of Duty availability contractually protected, Sony must compete more on its own platform, services, and game portfolio rather than on access to this particular franchise.

Third-order effects

If major acquisitions increasingly require long-duration access commitments for marquee content, exclusivity becomes less available as a post-deal strategy and more costly to preserve.
The case points toward competition in console gaming being shaped by enforceable content-access terms, alongside the underlying economics of exclusive games.

The trend: This is one data point in the shift from platform-exclusive blockbuster content toward negotiated, long-term cross-platform access commitments in major games deals.

Discussion

Gameranx Ryan Parreno on x
PlayStation Signs 10 Year Deal With Microsoft For Call of Duty
Pure Xbox Liam Doolan on x
Microsoft & Sony Sign Binding Agreement To Keep Call Of Duty On PlayStation
@rodhilton@mastodon.social Rod Hilton on mastodon
Tomorrow: Microsoft announces retirement of Call of Duty franchise and teases new game: “Duty Calls” — https://www.theverge.com/...
@xboxp3 Phil Spencer on x
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.
@bradsmi Brad Smith on x
From Day One of this acquisition, we've been committed to addressing the concerns of regulators, platform and game developers, and consumers. Even after we cross the finish line for this deal's approval, we will remain focused on ensuring that Call of Duty remains available on...
@tomwarren Tom Warren on x
Update: Microsoft has confirmed to me that Sony's Call of Duty deal is for 10 years https://www.theverge.com/...
@fosspatents @fosspatents on x
There were two complainants. One has now signed a CoD deal with Microsoft. The other testified in U.S. court that cloud gaming competes with console and PC games, i.e., is not a relevant antitrust market. No more need for to worry. Time to move on.
@fosspatents Florian Mueller on x
10 years it is. Much better for Sony now if the deal closes because the alternative would be to negotiate a new CoD deal soon with ABK, whose management would deal with Sony professionally but not really like them if the deal fell through.
@deeketweak Derek Strickland on x
Since Activision will act as a limited integration company, I'm curious if Sony will be signing PLAs (Publisher Licensing Agreements) with Activision or with Xbox. Mojang is an Xbox Game Studios team so it makes sense the PLA would be PS x XGS.
@stephentotilo Stephen Totilo on x
Sony has confirmed with me/Axios that PlayStation's Call of Duty deal with Microsoft (pending Activision purchase) is for 10 years I'm looking forward to still being on this beat in 2033 and covering the next round of Nintendo, Nvidia and Sony contract negotiations for CoD)
@deeketweak Derek Strickland on x
Under Xbox, the Call of Duty franchise will grow in ways that weren't possible in the Activision regime. Xbox is roughly 2x bigger than Activision, with a thriving services/software ecosystem and expansion-driven platform. It'll be hard to predict exactly what happens now.
@fosspatents Florian Mueller on x
The terms are not known for now. Maybe some media reports will say more, or some final regulatory decision somewhere. For now, it's unclear whether it's the deal that was previously offered. But a deal is a deal. And Sony itself knew CoD was going to remain on PlayStation anyway.
@deeketweak Derek Strickland on x
Once Call of Duty is integrated into Xbox revenues, and Game Pass adds many millions more subscribers, we could see Xbox expand in ways that we haven't seen for a long time. The crazy thing is Xbox is set up to preserve the past (BC) as it pushes into the future. One thing...
@matthewstoller Matt Stoller on x
Oh look Microsoft is already foregoing revenue to boost Xbox using Call of Duty, even before the deal is closed! https://www.tweaktown.com/...
@tomwarren Tom Warren on x
thinking back to February when Microsoft was waving around a contract for Sony to sign a Call of Duty deal and Jim Ryan was telling Bobby Kotick he just wanted to get the Activision acquisition blocked. My how things have changed both on the regulatory side and with Sony signing …
@nickstatt Nick Statt on x
It really does feel like the vast majority of the hand-wringing over this deal was based on hypothetical scenarios that have all along been highly unlikely. Though it's going to be very interesting to see what happens with next-gen consoles / once the deal expires.
@fosspatents Florian Mueller on x
@tgrfan42069 The @CATribunal could help the @CMAgovUK and Microsoft tomorrow to figure out a solution that enables deal closing. Whether it will make that effort is not known, given that the agenda is case management, i.e., discussing how to proceed with the appeal.
@fosspatents Florian Mueller on x
The console market theory of harm was dead in 42 countries with almost 2.9 billion people: - 40 where the deal had been cleared by regulators - 1 where the judiciary allowed closing (U.S.) - 1 where the regulator dropped the theory while pursuing a cloud theory (UK) 🧵2/3
@samuelstolton Samuel Stolton on x
Microsoft Vs Sony battle over Activision on hold, after firms sign a deal to keep Call of Duty on PlayStation. Eyes turn to the U.K's Competition Appeal Tribunal tomorrow, where joint applications to adjourn legal proceedings will be considered as CMA & MS continue negotiations
@fosspatents Florian Mueller on x
You'd have had to be more concerned about the terms of the deal being good for Xbox at other stages of the process than now, where Microsoft was able to do the deal from a position of strength after all those decisions enabling the closing of the deal, foreseeably also in the UK.
@domsplaying Dom on x
Makes sense, as Sony now sees the writing on the wall. One curiosity to me is no mention of time frame, where I believe executives specifically said 10 years with all the other CoD deals. Either way, hurdles in the way of MS ActiBlizz closing soon are being cleared, one by one.
@benjisales Benji-Sales on x
Microsoft and Sony have signed an agreement to keep Call of Duty on PlayStation The final pieces are coming together for the acquisition to officially close. Could happen any day now
@fosspatents Florian Mueller on x
Better late than never. #Sony kept a low profile in recent months with respect to the acquisition of ABK, markedly different from “I don't want a new CoD deal. I just want to block your merger.” Now this constructive solution has been reached. 🧵1/3
@kelllombardi Kelly on x
Sometimes when I tell people I work at Xbox they'll say “oh I have a PlayStation I'm sorry” My answer is always the same: I love to connect with other gamers, no matter where they play 🤍
@thurrott Paul Thurrott on x
This is what victory looks like.
@bondsarah_bond Phil Spencer on x
Another step in our mission to bring everyone who loves to play, together. 💚🙅🏽‍♀️🥹 Quote Tweet · 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 loo…
@parismarx Paris Marx on x
We don't have the terms of the deal yet, but I'll be watching to see if this is just selling CoD on Playstation or also putting it on PS Plus. Either way, this means the MS-ABK deal is happening and it will have major implications for the games industry. https://www.theverge.com/…
@fxshaw Frank X. Shaw on x
oh just a quiet sunday morning here why do you ask
@hoeglaw Richard Hoeg on x
No matter how one feels personally about someone else, the best way to understand business news is to understand: the money always wins.
@tomwarren Tom Warren on x
BREAKING: Sony has agreed to a binding agreement with Microsoft to keep Call of Duty on PlayStation. Details here: https://www.theverge.com/...
@tomwarrenuk Tom Warren on threads
Microsoft has confirmed to The Verge that Sony's 10-year Call of Duty deal is limited to CoD. Microsoft originally offered to keep “existing Activision console titles on Sony”, including future...
@tomwarrenuk Tom Warren on threads
Microsoft's surprise deal with Sony for Call of Duty on PlayStation means the UK's CMA is now truly alone against the deal. All eyes now on the Competition Appeal Tribunal case management conference...
@carnage4life Dare Obasanjo on threads
Sony has signed a Call of Duty deal with Microsoft which will go into effect if the Activision acquisition goes through. As a PlayStation gamer, I'm glad Sony has decided to sign the deal. With this...
r/technews r on reddit
Sony agrees to 10-year Call of Duty deal with Microsoft
r/gamingnews r on reddit
Sony agrees to a Call of Duty deal with Microsoft
r/kindafunny r on reddit
Microsoft and PlayStation have come to an agreement regarding CoD
r/pcgaming r on reddit
Sony agrees to a Call of Duty deal with Microsoft | The Verge
r/playstation r on reddit
Microsoft & PlayStation have signed a deal to keep ‘CALL OF DUTY’ on PlayStation.

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