For months, Sony and Microsoft have been at odds over the future of the popular Call of Duty franchise on PlayStation consoles. Microsoft is already in talks to buy Call of Duty publisher Activision Blizzard, and Sony are rightfully worried this may lead to Microsoft making future Call of Duty games exclusive to Xbox.
This dispute played out both publicly and privately. Last December, Microsoft first offered Sony a 10-year contract to keep Call of Duty on PlayStation after the deal. However, Sony declined, fearing Microsoft could make the games Xbox exclusive or even sabotage the PlayStation versions.
Filings by Sony to regulators claimed they were worried about exclusivity. But emails revealed that internally, Sony’s PlayStation chief was “pretty sure” Call of Duty would remain on PlayStation for years. Microsoft argued Sony initially did not have serious concerns.
Negotiations between the companies continued for over 18 months with tensions rising. In August 2023, an email from Xbox chief Phil Spencer with a list of Activision games remaining on PlayStation angered Sony’s Ryan, leading to a communications breakdown.
Things came to a head in February 2023 when Ryan told Activision CEO Bobby Kotick he wanted to “block your merger, not make a new Call of Duty deal.” This showed Sony’s opposition to the acquisition, not a desire for a new deal. Meanwhile, Microsoft president Brad Smith was seen publicly waving a contract, trying to convince Sony to sign.
Microsoft maintained publicly that Call of Duty would remain on PlayStation,and Spencer testified under oath that it would remain on PS5. However, Sony resisted signing a deal.
Regulators in the UK blocked Microsoft’s Activision purchase, needing guarantees for Call of Duty on PlayStation. Microsoft and the UK regulator then paused legal battles to negotiate a modified deal.
Now, Sony has agreed to Microsoft’s 10-year Call of Duty contract, easing regulatory concerns. This allows Microsoft hopes to close the Activision purchase by its July 18th deadline, though a slight delay is possible to resolve the UK situation.
In summary, months of disagreements and heated exchanges gave way to a deal guaranteeing Call of Duty games on PlayStation for a decade. The contract will likely help Microsoft gain approval from regulators to buy Activision, potentially by mid-July.
As for what would happen at the end of the 10-year deal. I’ll say, let’s see how it plays out!
