Microsoft has announced that it will be licensing Activision Blizzard’s Call of Duty (CoD) to Sony for a span of 10 years. This decision comes in response to concerns raised by Britain regarding Microsoft’s $69 billion takeover of the renowned games maker. The details of this arrangement were made public by the regulatory body.
Last month, Microsoft struck a similar deal with Nvidia’s gaming platform, with the condition that it receives approval for the highly contested acquisition. Microsoft President Brad Smith expressed hope that Sony, a strong opponent of the takeover, would consider entering into a similar agreement.
The Competition and Markets Authority (CMA) of Britain expressed concerns in February, stating that this deal could potentially weaken the competition between Microsoft’s Xbox and Sony’s PlayStation, and hinder competition in cloud gaming. The CMA suggested that structural remedies may be necessary to address these concerns, including the divestment of the Call of Duty business.
In response to the CMA’s findings, Microsoft outlined a package of remedies that would safeguard all CoD players in Britain and bring substantial benefits to consumers and developers. Microsoft emphasized that its proposed licensing remedies would ensure parity between the PlayStation and Xbox platforms in relation to CoD, and guarantee broad availability of CoD and other Activision titles on cloud gaming services. The company also stated that it believed the criteria for the CMA to consider behavioral remedies had been met.
Sony, in its submission to the CMA, rejected Microsoft’s proposals, asserting that the only way to preserve competition in consoles and cloud gaming was to block the deal or subject it to a structural remedy, such as forcing Microsoft to sell CoD.
The gaming industry’s largest-ever deal, announced in January of last year, is currently facing scrutiny in both the United States and Europe. However, Microsoft is expected to secure EU antitrust approval by offering licensing deals to its competitors, according to sources familiar with the matter.
The CMA will deliver its ruling on the deal on April 22.
[Source: Thomson Reuters 2023]
Note: The following content may contain affiliate links. Please refer to our ethics statement for detailed information.
Denial of responsibility! TechCodex is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
Eugen Boglaru is an AI aficionado covering the fascinating and rapidly advancing field of Artificial Intelligence. From machine learning breakthroughs to ethical considerations, Eugen provides readers with a deep dive into the world of AI, demystifying complex concepts and exploring the transformative impact of intelligent technologies.
