Microsoft Offers Deal to Sony for Future Call of Duty Releases
Microsoft has reached across the aisle to its main gaming competitor as details emerge about a potential 10-year deal to allow Sony access to future Call of Duty releases. While specifics are sparse, this development could assuage some serious concerns that players have about the next few years in console gaming. If this deal goes through, it could serve as a springboard for future generations of inter-console companionship. If it fails, a poor deal could serve as a harbinger of a less consumer-friendly console future.
Call of Duty games has seen multi-platform releases ever since the first title launched back in 2003. Under the publisher Activision, developers Infinity Ward and Aspyr worked to create a franchise that would quickly become one of the biggest in gaming. Though early games were successful, it was 2007's CoD 4: Modern Warfare that really set the standard, raising the bar on first-person action.
Since that point, Call of Duty has been one of the most profitable franchises in gaming, bringing in more than $30 billion in its near 20-year lifespan. With millions of players buying each new game on release, this is a title that transcends platforms, or at least it did.
In early 2022, Microsoft acquired Activision Blizzard for $68.7 billion. With this sale, Microsoft can now hold all of the series produced by these companies for itself. While this means that Microsoft could, in theory, gain 100% of the profit from CoD, cutting off Sony means severely limiting the total audience. According to a tweet by respected industry professional Christopher Ding, nearly 60% of sales for CoD: Modern Warfare 2 came from PS4 and PS5. This means billions on the table, and it’s likely the main part of why Microsoft wants to negotiate.
The latest CoD, Modern Warfare 2 (a remake of the 2007 title), made a billion dollars in less than two weeks. While cutting Sony out wouldn’t necessarily translate to a 60% less profit, even the idea of $600 million unclaimed for one game is too much for a company like Microsoft to bear. A more diverse approach would undeniably be better for Microsoft, not to mention players.
For gaming enthusiasts, choice is king. Players get attached to their systems, and brand loyalty grows alongside nostalgia over the years and decades. Being unable to enjoy a series players have loved for generations would drive negative perceptions of Microsoft, even if they had another system they could play the games on. Platform is about more than just what’s available on the day, it’s about finding a home.
This idea of loyalty has long been a cornerstone of gaming, and it doesn’t just apply to the games themselves. The same concept is similarly accepted as explained in this esports betting guide, where users might initially choose a service because of special features like bonus offers, the platform also has a comprehensive guide that includes information on everything from popular esports titles to common bets for different game genres. Beyond that point, it could be the experience and design that matters most, bolstered by where friends get involved. Whether playing or betting on CoD, choice matters, and it only matters more over time.
From this perspective, it wouldn't just be foolish of Microsoft to deprive players of choice, it would be financially and reputationally irresponsible. Reaching an agreement could still be complicated, however, as the balance of power in this situation is tricky. Microsoft owns CoD, so they hold the cards. On the other hand, Sony is a tough negotiator, and its managers are smart enough to know how much both Microsoft and Call of Duty as a whole need their business.
Ultimately, there are concerns that two billion-dollar companies playing hardball could come back to hurt the consumer. Discussions are still in the early stages, and while there has been some improved cooperation between manufacturers with developments like cross-play, recent developments are another beast entirely.
Should negotiations go smoothly and respectfully, it's possible that Sony and Microsoft could hammer out a framework for future multiplatform releases of second-party titles. If discussions turn bitter, players could end up forced to spend hundreds on new systems or go without the titles they love. The stage is being set for the generations to come, and as players, we know which side we'd prefer the coin to land on.
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The Need for a Deal
Call of Duty games has seen multi-platform releases ever since the first title launched back in 2003. Under the publisher Activision, developers Infinity Ward and Aspyr worked to create a franchise that would quickly become one of the biggest in gaming. Though early games were successful, it was 2007's CoD 4: Modern Warfare that really set the standard, raising the bar on first-person action.
Since that point, Call of Duty has been one of the most profitable franchises in gaming, bringing in more than $30 billion in its near 20-year lifespan. With millions of players buying each new game on release, this is a title that transcends platforms, or at least it did.
In early 2022, Microsoft acquired Activision Blizzard for $68.7 billion. With this sale, Microsoft can now hold all of the series produced by these companies for itself. While this means that Microsoft could, in theory, gain 100% of the profit from CoD, cutting off Sony means severely limiting the total audience. According to a tweet by respected industry professional Christopher Ding, nearly 60% of sales for CoD: Modern Warfare 2 came from PS4 and PS5. This means billions on the table, and it’s likely the main part of why Microsoft wants to negotiate.
Reaching an Agreement
The latest CoD, Modern Warfare 2 (a remake of the 2007 title), made a billion dollars in less than two weeks. While cutting Sony out wouldn’t necessarily translate to a 60% less profit, even the idea of $600 million unclaimed for one game is too much for a company like Microsoft to bear. A more diverse approach would undeniably be better for Microsoft, not to mention players.
For gaming enthusiasts, choice is king. Players get attached to their systems, and brand loyalty grows alongside nostalgia over the years and decades. Being unable to enjoy a series players have loved for generations would drive negative perceptions of Microsoft, even if they had another system they could play the games on. Platform is about more than just what’s available on the day, it’s about finding a home.
This idea of loyalty has long been a cornerstone of gaming, and it doesn’t just apply to the games themselves. The same concept is similarly accepted as explained in this esports betting guide, where users might initially choose a service because of special features like bonus offers, the platform also has a comprehensive guide that includes information on everything from popular esports titles to common bets for different game genres. Beyond that point, it could be the experience and design that matters most, bolstered by where friends get involved. Whether playing or betting on CoD, choice matters, and it only matters more over time.
From this perspective, it wouldn't just be foolish of Microsoft to deprive players of choice, it would be financially and reputationally irresponsible. Reaching an agreement could still be complicated, however, as the balance of power in this situation is tricky. Microsoft owns CoD, so they hold the cards. On the other hand, Sony is a tough negotiator, and its managers are smart enough to know how much both Microsoft and Call of Duty as a whole need their business.
Ultimately, there are concerns that two billion-dollar companies playing hardball could come back to hurt the consumer. Discussions are still in the early stages, and while there has been some improved cooperation between manufacturers with developments like cross-play, recent developments are another beast entirely.
Should negotiations go smoothly and respectfully, it's possible that Sony and Microsoft could hammer out a framework for future multiplatform releases of second-party titles. If discussions turn bitter, players could end up forced to spend hundreds on new systems or go without the titles they love. The stage is being set for the generations to come, and as players, we know which side we'd prefer the coin to land on.
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