Microsoft offers Sony 10-year deal for Call of Duty on PlayStation if Activision deal goes through

Microsoft President Brad Smith said the institution offered Sony a 10-year declaration to marque each caller merchandise of Call of Duty disposable connected Sony's PlayStation console astatine the aforesaid clip arsenic the U.S. giant's Xbox.

The Redmond-headquartered tech elephantine is hoping the determination volition assuage regulators' and its rivals' antitrust fears implicit its proposed $69 cardinal acquisition of Activision Blizzard, the developer down Call of Duty, a fashionable shooter game.

Last month, Politico reported that the U.S. Federal Trade Commission is apt to record an antitrust lawsuit to artifact Microsoft's takeover of Activision.

In response, Smith wrote an sentiment portion successful the Wall Street Journal connected Monday defending the acquisition arsenic "good for gamers" and criticizing immoderate imaginable FTC lawsuit.

"That would beryllium a immense mistake. It would wounded competition, consumers and thousands of crippled developers," Smith said of the reported lawsuit.

Regulators successful the European Union and the U.K. person opened antitrust probes into Microsoft's projected takeover to analyse whether the woody would wounded competition. The EU is acrophobic Microsoft whitethorn artifact entree to games specified arsenic Call of Duty to rivals.

Sony shares sank initially aft Microsoft announced the acquisition plans successful January arsenic investors feared PlayStation would not get entree to deed Activision games. But Microsoft has looked to assuage those fears.

Any determination to marque Call of Duty unavailable to Sony's PlayStation console would beryllium "economically irrational," Microsoft's Smith said due to the fact that a "vital" portion of the game's gross comes from PlayStation crippled sales.

"Given the popularity of cross-play, it would besides beryllium disastrous to the 'Call of Duty' franchise and Xbox itself, alienating millions of gamers."

"That's wherefore we've offered Sony a 10-year declaration to marque each caller 'Call of Duty' merchandise disposable connected PlayStation the aforesaid time it comes to Xbox. We're unfastened to providing the aforesaid committedness to different platforms and making it legally enforceable by regulators successful the U.S., U.K. and European Union."

Still, determination are questions arsenic to whether this volition beryllium capable to calm Sony's concerns.

"A 10-year committedness sounds significant, Sony would beryllium so 'safe' during the lifecycle of the PlayStation 5 but could tally into occupation by the clip the adjacent console procreation begins," Serkan Toto, CEO of Tokyo, Japan-based games consultancy Kantan Games, told CNBC.

"So I judge the connection volition not beryllium capable to squash Sony's concerns, but it mightiness calm down regulators to immoderate extent."