Microsoft Corp. on Tuesday signed the paperwork on its promise to deliver games like Call of Duty to Nintendo Co.’s platforms for a decade, in a move designed to allay regulators’ fears about its proposed Activision Blizzard Inc. takeover.
(Bloomberg) — Microsoft Corp. on Tuesday signed the paperwork on its promise to deliver games like Call of Duty to Nintendo Co.’s platforms for a decade, in a move designed to allay regulators’ fears about its proposed Activision Blizzard Inc. takeover.
The two firms “negotiated and signed a binding 10-year legal agreement” for Activision’s Call of Duty — to be released to Nintendo players the same day and with the same features as its Xbox version — Microsoft President Brad Smith tweeted.
Microsoft is battling to convince regulators and skeptical games industry players of its good faith in trying to acquire Activision. Console-making rival Sony Group Corp. has objected, saying that Microsoft will eventually turn Call of Duty and other marquee titles in the Activision portfolio into exclusives for its Xbox console and subscription service. Call of Duty is consistently at the top of sales charts and its most recent release has occupied the No. 1 spot in the US since its launch in November, according to market tracker NPD.
For Nintendo, which is known for producing family-oriented content like homemaking simulator Animal Crossing or the cartoonish paintball shooter Splatoon, Call of Duty is an unusually adult-themed title. But expanding into other genres would help the Kyoto-based games maker retain players on its own platforms and prevent them from looking elsewhere, analysts said.
“We need to remember kids grow up and customer retention is always less costly than customer acquisition,” said Carolina Milanesi, principal analyst at Creative Strategies. “You can remain a family-friendly brand even with content that is not strictly kid-oriented. Apple has been very successful in doing so with Apple TV+. It is about striking a balance, but also about values, parental controls and privacy.”
A Nintendo spokesperson confirmed the agreement with Microsoft but declined to comment further. Microsoft has offered the same 10-year deal on the same terms to Sony, but the Tokyo-based PlayStation maker has so far declined.
(Updates with analyst comment)
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