As regulators continue to scrutinize Microsoft’s proposed $69 billion acquisition of Activision Blizzard, Microsoft has claimed that Sony, the maker of PlayStation and one of the deal’s largest opponents, recently lied to the European Union (EU) about its plans for Call of Duty.
Microsoft has publicly pledged to keep the popular first-person shooter franchise on PlayStation after the merger is finalized, but Sony has reportedly suggested otherwise to Brussels officials, according to Microsoft.
Microsoft Claims Sony Has Mislead EU Regulators
The EU is reportedly planning to issue a formal antitrust warning to Microsoft regarding the transaction. Call of Duty is indisputably one of the largest entertainment franchises in the world, regularly attracting tens of millions of players and grossing hundreds of millions of dollars.
Microsoft’s initial offer to Sony to keep Call of Duty on PlayStation for three years following the completion of its Activision Blizzard acquisition was deemed inadequate by Sony CEO Jim Ryan in a statement. Following this, Microsoft reportedly offered Sony a 10-year contract, and the two companies subsequently met to discuss specifics.
It appears, based on Shaw’s public statements, that an agreement was not reached, although the precise outcome of these negotiations is unknown.
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Xbox To Host Call of Duty
Microsoft has repeatedly stated that making Call of Duty exclusive to its Xbox consoles is not in its plans, with Microsoft Gaming CEO Phil Spencer stating that Microsoft is primarily acquiring Activision Blizzard for its dominant mobile gaming position and that the company wants to be where the players are, especially with franchises as large as Minecraft and Call of Duty.
Microsoft President Brad Smith argued in an opinion piece that making Call of Duty exclusive would be economically irrational, given that a significant portion of Activision Blizzard’s ‘Call of Duty revenue comes from PlayStation game sales. In his own commentary, Shaw reiterates these points.
The merger is expected to be approved by regulators in the spring, with the UK’s Competition and Markets Authority (CMA) sharing a preliminary decision in late January or February.
On April 11 and April 26, respectively, the EU and CMA are scheduled to issue their decisions. It’s difficult not to laugh at how ridiculous things have become, what with the FTC allegedly timing its lawsuit against the merger to manipulate the EU into avoiding settlements with Microsoft and Sony outright lying about Microsoft’s planned commitments.
If Shaw’s claims are accurate, Sony’s opposition to the merger has reached a new level of bad faith. It reminds me of when the company complained that Microsoft might raise Xbox prices after its acquisition of Activision Blizzard, mere months after Sony increased the price of its own PS5 systems.
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