Microsoft proposes a 10-year contract with ‘Call of Duty’ IP Sony
Microsoft (MS), which is having difficulty acquiring Activision Blizzard due to the brakes of the EU and the U.S. Federal Trade Commission (FTC), is continuously making efforts to normalize transactions. It is said that Sony, a rival company opposed to the merger, has proposed a 10-year contract for the PlayStation (PS) platform of its flagship IP (intellectual property) “Call of Duty.”
This fact was reported by Reuters on the 6th (Korea Standard Time). Microsoft’s acquisition of Activision Blizzard is a merger and acquisition case that various institutions such as the EU and the U.S. FTC are watching. The “Big Deal,” which took place in January, is worth 68.7 billion dollars, the largest in MS’ 46-year history.
Once the acquisition is completed, Microsoft will quickly become the third-largest game company in terms of sales. Accordingly, competitors such as Sony and Google have steadily raised concerns about Microsoft’s monopoly since the announcement. As regulators continued to strengthen their investigation, Microsoft filed a 10-year contract with its rival Sony for its flagship IP “Call of Duty” to cover up the situation.
Call of Duty is an IP that has been loved by FPS users around the world since its first title was released in 2003. Along with Nintendo’s “Mario Series” and “Pokemon Series,” it is considered one of the leading longevity series, and its latest “Modern Warfare 2” is enjoying the most popularity until 2022, recording sales of $800 million (about 1.54 trillion won) in the first week of its release.
Earlier, Microsoft said it would “maintain the existing contract” when it acquired Activision Blizzard, but the remaining contract between “Call of Duty” and PlayStation was only about three years. With it unclear whether the contract will be extended in the future, Sony’s strong concern over Microsoft’s monopoly is behind the offer of the 10-year contract.
In an interview with the Wall Street Journal, Microsoft President Brad Smith said, “Sony’s monopoly risk is attributable to the risk of disrupting the supply of PlayStation in ‘Call of Duty’ IP. However, from an economic point of view, it is an unreasonable measure,” he stressed.