It has been reported that Microsoft approached Sony with a 10-year contract intended to maintain the presence of theCall of Dutyfranchise on PlayStation. The development arrives as tensions continue to be heightened between the two gaming giants, currently embroiled in legal arguments surrounding Microsoft’s acquisition of Activision Blizzard, withCall of Dutyvery much caught up in the middle.
A historic deal for the video game industry, Microsoft’s proposed $68.7 billion merger has stalled slightly as the United Kingdom and European Union express concerns regarding competition if the acquisition were to go through as planned. Seemingly more skeptical than theBrazilian Administrative Council which approved the deallast month, the European Commission announced that an in-depth investigation would be conducted. Only Saudi Arabia joins Brazil in having approved the acquisition, with more countries vocalizing concerns that seem to echo, at least in part, the arguments put forward by Sony, who have used theCall of Dutyfranchise to represent why the merger could prove costly for the industry.
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A report fromThe New York Timesopens by detailing recent events, including Microsoft’s accusation that Sony has been “misleading regulators.” It frames the situation as one pertaining to the state of Big Tech, citing fears that “industry giants wield too much power,” and listing Google, Meta, Amazon, and Apple as examples, companies that are all in some way invested in the video game industry. The article goes on to note that Microsoft “has been less successful in neutering opposition from Sony,” who have thus been left unsatisfied by assurances thatCall of Dutyis not at risk of exclusivity.
In fact, Microsoft has reportedly gone as far as to offer Sony “a 10-year deal to keepCall of Dutyon PlayStation,” which Sony has declined to comment on.Phil Spencer, head of Xbox, was quoted to have said, “we’re going to keepCall of Dutyon your platform,” when referencing PlayStation. AsThe New York Timesarticle mentions, Microsoft’s “public affairs operation has spent the past decade building the company’s nice-guy reputation,” so Sony may not necessarily be willing to take Microsoft at its word without a binding agreement to follow up.
With gaming now the most profitable industry in the entertainment sector, regulatory committees around the world are right to peruse any proposed acquisitions, especially one this significant. Google had the now decommissioned Stadia service,Amazon recently publishedLost Arkand developedNew World, Meta has invested heavily into virtual reality, and Apple owns an incredibly lucrative store that dominates a wealthy mobile gaming market. Given the risk posed by monopolies, and the current trajectory of a gaming industry that is rapidly acquiring smaller publishers and studios, stringent oversight of involved parties could be a good thing.
