Microsoft Activision Blizzard acquisition

The ongoing legal battle between the US Federal Trade Commission (FTC) and Microsoft over the latter’s acquisition of Activision Blizzard has taken a new turn.

As reported by Kotaku, the FTC is seeking details from Sony about its PlayStation exclusivity deals, including the amount it pays for “blocking rights” to keep games off rival services like Xbox Game Pass.

This comes after Microsoft’s request to the FTC regarding PlayStation detailing its exclusivity deals. The request covers all deals made by PlayStation after January 1st, 2019, including any fees or agreements that prevented publishers from launching their games on Xbox Game Pass.

The judge in the case has sided with Microsoft’s request, stating that understanding the full extent of Sony’s exclusivity deals and their effect on industry competitiveness will assist in Microsoft’s defence regarding its Activision acquisition.

FTC’s chief administrative judge D. Michael Chappell said:

Microsoft argues that the Complaint in this case makes a number of allegations regarding high-performance video game console developers’ exclusivity arrangements with video game publishers. Microsoft states that it is aware that SIE requires many third-party publishers to agree to exclusivity provisions, including preventing the publishers from putting their games on Xbox’s multi-game subscription service, and that understanding the full extent of SIE’s exclusivity arrangements and their effect on industry competitiveness will assist in its defense.

The last time we saw an exclusivity deal like this made public was back in 2021 during the Epic Games vs. Apple saga.

Microsoft’s initial request was to get details on Sony’s exclusivity deals dating back to 2012, but the timeline was deemed “excessive” by the judge, and agreed to seek details from Sony about its PlayStation exclusivity deals made post-2019. The evidentiary hearing for the case is scheduled for August 2nd, and it could be months before any potential new details are revealed.

Image credit: Shutterstock

Source: Game Developer Via: Kotaku

Sony and Microsoft have worked out an agreement to keep Call of Duty on PlayStation for three more years, however, PlayStation CEO Jim Ryan has also reportedly labelled Microsoft’s offer to keep the title on PlayStation “inadequate on many levels,” as reported by GameIndustryBiz.

The disagreement between the two companies comes after Microsoft announced plans to acquire Activision Blizzard, the publisher behind the Call of Duty franchise, in a deal valued at $68.7 billion USD (about $85.96 billion CAD). The acquisition is being criticized by regulators, with concerns regarding Microsoft withholding Activision Blizzard’s games from competitor consoles, like the PlayStation.

Last week, Microsoft Gaming CEO Phil Spencer stated that Call of Duty will remain multiplatform once Activision Blizzard has been acquired. “We’ve heard that this deal might take franchises like Call of Duty away from the places where people currently play them,” wrote Spencer. “That’s why, as we’ve said before, we are committed to making the same version of Call of Duty available on PlayStation on the same day the game launches elsewhere. We will continue to enable people to play with each other across platforms and across devices.”

Had good calls this week with leaders at Sony. I confirmed our intent to honor all existing agreements upon acquisition of Activision Blizzard and our desire to keep Call of Duty on PlayStation. Sony is an important part of our industry, and we value our relationship.

— Phil Spencer (@XboxP3) January 20, 2022

On the other hand, Ryan, in a statement given to GameIndustryBiz said that he did not want to go public and comment on private business, but since Spencer talked about it in the public forum, he feels the need to “set the record straight.” According to Ryan, “Microsoft has only offered for Call of Duty to remain on PlayStation for three years after the current agreement between Activision and Sony ends. After almost 20 years of Call of Duty on PlayStation, their proposal was inadequate on many levels and failed to take account of the impact on our gamers.”

He added, “We want to guarantee PlayStation gamers continue to have the highest quality Call of Duty experience, and Microsoft’s proposal undermines this principle.”

This year’s Call of Duty: Modern Warfare 2 is expected to come to the PlayStation, alongside any other Call of Duty franchise titles that release in the next three years. After that, Call of Duty might become an Xbox-exclusive franchise.

Image credit: Call of Duty

Source: GameIndustryBiz