Microsoft Corp (NASDAQ:MSFT) on Tuesday announced plans to acquire game developer Activision Blizzard Inc (NASDAQ:ATVI) for $95 per share in an all-cash deal.
The announcement left people wondering how the partnership would impact competitor Sony Group Corp (NYSE:SONY). The companies have now spoken out on the matter.
What To Know: Microsoft and Sony essentially represent a duopoly in the video game console market. Microsoft's Xbox and Sony's PlayStation are the go-to consoles for gamers of all skill levels.
With Microsoft's planned acquisition of Activision, the company will acquire its iconic game franchises including "Call of Duty," "Warcraft," "Diablo," "Overwatch" and "Candy Crush."
"Call of Duty" is one of the most popular games in the world. Microsoft has a history of making games exclusive to Xbox, most notably with its "Halo" franchise.
This left questions about the future availability of "Call of Duty," as many speculated Microsoft would limit the game's availability to Xbox platforms.
Related Link: Could Microsoft Make 'Call Of Duty' An Xbox Exclusive? 3 Scenarios To Consider
"If you can't ever play 'Call of Duty' again on the PlayStation, it's going to kill PlayStation sales," Wedbush Securities analyst Michael Pachter told Benzinga earlier this week.
Microsoft Gaming CEO Phil Spencer provided PlayStation fans and Sony investors with a sense of reassurance Friday morning.
After speaking with Sony executives, Spencer announced that Xbox intends to honor all existing agreements, including its "desire to keep Call of Duty on PlayStation."
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
Sony also pointed to existing contracts between the two companies earlier this week. "We expect that Microsoft will abide by contractual agreements and continue to ensure Activision games are multiplatform," a spokesperson told The Wall Street Journal.
It sounds like Activision games will continue to be available on the PlayStation platform, but it will take some time for this to play out. The deal between Microsoft and Activision is not expected to close until 2023.
Photo: courtesy of Microsoft.
