Microsoft, Activision Blizzard deal: Call of Duty, Game Pass, and regulatory debates

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New disclosures shed light on the turbulence surrounding a major tech and gaming takeover. The storyline centers on Microsoft’s bid to acquire Activision Blizzard, the publisher behind blockbuster franchises such as Call of Duty, Overwatch, and Diablo. The leaked document, circulated to regulators in North America and the CMA in the United Kingdom, discusses key sticking points of the deal that could shape the future of popular gaming titles on subscription platforms.

The document indicates that, should the acquisition proceed, certain Call of Duty titles may not appear on Xbox Game Pass for an extended period. While the exact timeline remains undecided, observers note that the balance of arguments in favor of the deal may rest on commitments to respect preexisting agreements.

Respecting existing commitments

Leaders appointed by Microsoft for the acquisition highlight that the restriction on game availability stems from a binding agreement between Activision Blizzard and Sony. The full terms were not public until the CMA response was leaked. In a January 2022 message from Microsoft Gaming CEO Phil Spencer, the company reiterated its intent to honor all existing contracts following the Activision Blizzard purchase. The document shows that the Sony agreement limits hosting Call of Duty titles on the subscription service for a number of years, reinforcing the confidentiality of the deal’s details.

This alignment reflects a clear stance by both Phil Spencer and Microsoft: the company will uphold preexisting arrangements even amid the acquisition. As a result, Call of Duty games may remain outside the Xbox Game Pass lineup for a period, despite the ongoing merger.

The central role of Call of Duty

Call of Duty remains a focal point for Sony in its response to the merger. The Japanese game publisher worries about the franchise’s impact on platform dynamics and subscriptions. Spencer has expressed confidence that core Call of Duty titles will continue to be available in Sony’s PlayStation ecosystem, ensuring players can access the series across major consoles.

Before the CMA, Sony’s advisers indicated they would not block the merger outright, provided certain safeguards are met. Among the conditions are limits on the content advantages tied to Call of Duty on Xbox devices and assurances that the games will not be pushed onto the subscription service under unfavorable terms.

Authorities in the United Kingdom reportedly weighed these arguments, though criticism emerged over perceived reliance on Sony’s private interests rather than a market-wide assessment. The next installment in the Call of Duty saga, Modern Warfare II, was scheduled for release in late October 2022 across PlayStation, Xbox, and PC platforms, marking a continued multi-platform presence beyond PC exclusivity years earlier.

[Citation: Regulatory filings and company communications] [Citation: Microsoft and Sony statements regarding Call of Duty commitments]

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