To appease antitrust authorities, Microsoft makes concessions in the acquisition of Activision. Offered guaranteed release of Call of Duty on PlayStation, Nintendo Switch and Steam if purchase is approved with a 10-year contract.
The offer was made by Microsoft CEO Brad Smith in an op-ed published in the Wall Street Journal. “We have offered Sony a 10-year deal to release each new Call of Duty simultaneously on Xbox and PlayStation.” As this commitment is contractually guaranteed, it would also be enforceable if in doubt, should it be re-evaluated in the future, so be withdrawn.
FTC takes action against takeover
The possible withdrawal of previous commitments is one of the reasons why the FTC wants to take action against the takeover: According to the US antitrust authority on Twitter, Microsoft has not kept its commitments when it took over Zenimax (Bethesda) and is now offering some upcoming titles platform exclusive. The FTC fears that Microsoft could then behave anti-competitively in the area of consoles and game subscriptions, for example by offering games at unequal prices, by delays, in poorer quality or by no longer being offered by competitors.
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Microsoft has entered into a 10-year commitment to bring Call of Duty to @Nintendo following the merger of Microsoft and Activision Blizzard King. Microsoft is committed to helping bring more games to more people – however they choose to play. @ATVI_AB
— Phil Spencer (@XboxP3) December 7, 2022
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Nintendo and Valve are in a different position
Phil Spencer, head of the Xbox division, also made it clear on Twitter that this offer does not only apply to Sony. Nintendo and Valve have already addressed this, Spencer wrote. This also means that Call of Duty will find its way to the switch and its successor console for the first time. The series will also be sold via Steam in the future. Smith added via Twitter that Sony could take advantage of the same offer at any time.
However, Valve and Nintendo can more easily accept such an offer. The Switch and Nintendo in general cater to a different audience than Microsoft and Xbox, so they're less of a clash than Sony and Microsoft. In addition, Nintendo lives to a large extent from the exclusive productions for this target group, which is also reflected in the fact that the console was able to achieve great success even without Call of Duty.
Steam, in turn, is the dominant marketplace on PC for selling games. Microsoft's attempt to establish the Windows Store was largely unsuccessful, which is why other series such as Age of Empires, Gears of War, Halo or Forza are now being offered again in Valve's shop. Other publishers who, like Ubisoft, have experimented with distribution via their own launcher and the Epic Games Store have also had the same experience. Since Microsoft otherwise relies on the Game Pass, there is also a slight competitive situation with Valve, which makes such a deal much easier for the parties.
By all means
Sony, on the other hand, is in a different situation: PlayStation 5 and Xbox Series X are competing for the same audience. Being able to decide on the whereabouts of what may not be the best but most popular first-person shooter is therefore of greater importance. Both companies are therefore fighting to end the takeover in their interest.
Eurogamer sees the latest reports about the formation of a union at Zenimax (Bethesda) in this context as advertising on its own behalf, because Microsoft had announced that it would not put any stones in unions of employees wanting to lead the way – unlike Activision. Both Sony and Microsoft are also trying to downplay their own weight in dealings with antitrust authorities.