Xbox and PlayStation sign major deal on the future of Call of Duty – as Activision deal gets closer

‘Binding agreement’ marks latest piece of good news for Microsoft

(Getty Images for Activision)

Microsoft will keep Call of Duty on PlayStation after it buys the series’ developer, according to a new deal signed with PlayStation.

The Xbox and PlayStation makers have been engaged in a sometimes angry war in recent months, as Microsoft attempts to buy Activision Blizzard, the developer of games including Call of Duty.

PlayStation’s objections centre around the fact that the deal would give Microsoft too much control over the gaming market, given the dominance of Call of Duty among players on consoles.

Those objections have led to legal hearings, as well as opposition from regulators and competition authorities. At times, those legal objections have looked to derail the deal, which would be the biggest ever gaming acquisition if it is completed.

But it now looks to be moving forward, after Microsoft announced that it had signed a “binding agreement” to make the games available on other consoles when the deal is complete.

The deal could further ease regulators concerns about what would happen to the game as well as the broader console and gaming market if the deal goes ahead.

It is the latest piece of good news for Microsoft, which won a legal case last week against objections from the US Federal Trade Commission, and looks to be moving towards closing the deal.

“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,” said Phil Spencer, Microsoft’s head of Xbox, in a tweet.

And Microsoft President Brad Smith said in a tweet, “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 more platforms and for more consumers than ever before.”

The FTC had argued the deal would hurt consumers whether they played video games on consoles or had subscriptions because Microsoft would have an incentive to shut out rivals like Sony.

To address the FTC’s concerns, Microsoft had earlier agreed to license “Call of Duty” to rivals, including a 10-year contract with Nintendo, contingent on the merger closing.

Additional reporting by agencies