Xbox’s industry-shattering acquisition of Activision Blizzard King in the very beginning of 2022 is a venerable moment in gaming history. The $68.7 billion buyout is not only the biggest in gaming, but one of the largest acquisitions in the entertainment industry, period.
As soon as the merger was announced, up until its completion in October 2023, chatter in gaming-related spheres was dominated by a single, burning question: does Call of Duty have a future on PlayStation consoles? This seemingly simple inquiry snowballed into a complex back-and-forth between PlayStation and Xbox, rife with suspicion and frustration on both ends.
PlayStation And Xbox’s Furious Tug Of War
Jim Ryan, the CEO of Sony Interactive Entertainment at the time, emerged as one of the biggest critics of the Activision acquisition, the owners of Call of Duty. In a legal response, Ryan harbored anxieties that if Microsoft were given control of the IP, they would prioritize CoD games for Xbox consoles, indirectly degrading the experience for PlayStation customers.
Microsoft Gaming CEO Phil Spencer refuted Ryan’s claims, saying that they would be happy to enter a contractual agreement with Sony that ensures an equal CoD experience for all platforms, and that the deal was about reaching more players across more devices. Microsoft CEO Satya Nadella’s response to Sony was a bit less virtuous, though, with a jab for the history books:
So if this is about competition, let us have competition.
The back-and-forth between the gaming giants, especially legally, became a spectator sport for gamers worldwide. Weeks turned into months, with each passing day amplifying the uncertainty surrounding Call of Duty‘s future on PlayStation. Fan theories swirled online, with some fearing the franchise would become an Xbox exclusive.
Sony fought tooth and nail to get the deal blocked across major regulators around the globe. They partially succeeded, with the UK’s Competition and Markets Authority initially prohibiting the acquisition due to cloud gaming concerns, and the US’ Federal Trade Commission filing a lawsuit against Microsoft for attempting to “suppress competitors”. However, both of these didn’t last long.
PlayStation Buddied Up With Xbox After Acquisition Cleared
The CMA eventually approved the deal after Microsoft struck a deal with Ubisoft and some other companies for Activision’s cloud gaming rights, and the FTC was not granted the preliminary injunction that would allow them to take the lawsuit forward. It was clear skies ahead for the merger between Xbox and Activision Blizzard King.
In July 2023, a collective sigh of relief swept through the gaming community. Sony finally confirmed a ten-year agreement with Microsoft, guaranteeing Call of Duty‘s presence on PlayStation consoles for the next decade. While the finer points of the deal remain shrouded in secrecy, a recent CNBC interview with Jim Ryan offered some fascinating insight:
You know what? We’re at risk of getting very granular here, but there are deals and deals. And, you know, the deal that was offered at a certain point in time may not have been the deal that was actually signed.
Ryan’s remark suggests that the early versions of the agreement Microsoft presented may not have been adequate for PlayStation. This is further validated by a statement he provided to GamesIndustry.biz back in September 2022, where he revealed the initial terms proposed by Microsoft for keeping Call of Duty on PlayStation:
Microsoft has only offered for Call of Duty to remain on PlayStation for three years after the current agreement between Activision and Sony ends. After almost 20 years of Call of Duty on PlayStation, their proposal was inadequate on many levels and failed to take account of the impact on our gamers. We want to guarantee PlayStation gamers continue to have the highest quality Call of Duty experience, and Microsoft’s proposal undermines this principle.
Thankfully, both publishers eventually came to an agreement they were happy with. Ryan expressed Sony’s elation at partnering with Microsoft to secure Call of Duty‘s future on PlayStation:
We were absolutely thrilled to be able to negotiate a deal with Microsoft to ensure that that franchise remains on PlayStation platforms for the next ten years, and that was very important to us, and we’re very happy to have done that deal.
This news undoubtedly comes as a sweet victory for PlayStation gamers. Call of Duty is an important pillar of growth for the PlayStation ecosystem, often topping sales charts and contributing heavily to live-service revenue. The ten-year deal ensures stability and continued access to the franchise and its future entries for PlayStation.
It took a rollercoaster of legal drama and negotiations, but Call of Duty‘s place on PlayStation for the foreseeable future has been solidified. PlayStation users around the globe can rest easy and continue their adventures in blockbuster Call of Duty games for years to come.
However, the question has to be pondered – what concessions did Sony make to secure this deal, and what comes beyond this ten-year agreement? Is the Call of Duty‘s future on PlayStation truly safe, or is Microsoft playing the long game here?
Let us know what you think in the comments!
