Microsoft has announced the signing of a 10-year contract to bring Xbox games to other gaming platform companies like Nintendo if the Microsoft x Activision Blizzard merger comes to life.
It’s been a while since the acquisition process began between Microsoft, the parent company of Xbox, and Activision Blizzard, the company that owns the rights to the famous games Call of Duty, World of Warcraft, Diablo, and Candy Crush Saga.
The Federal Trade Commission has opposed the merger between the two giants due to competition concerns within the gaming industry. According to the FTC, if the Microsoft x Activision Blizzard merger goes ahead, Microsoft would have a good chance of “suppressing competitors” in the gaming industry. They have also revealed that since game developers joined Xbox Game Pass, game sales have been declining. Meanwhile, Microsoft has ensured that Xbox Game Pass continues to grow amid falling sales.
The Federal Trade Commission is currently suing to block the $69 billion Microsoft x Activision merger over potential antitrust claims. US authorities have referred to the Microsoft x ZeniMax takeover incident in which Microsoft made many Bethesda games exclusive to Xbox only, after assuring European antitrust authorities that this would not happen.
To ease the FTC’s concern, Microsoft Chairman Brad Smith has announced that the company will sign a 10-year contract with Nintendo that would force Microsoft to make Xbox games available to Nintendo gamers.
In a tweet, Brad Smith has confirmed that Microsoft entered into a binding agreement with Nintendo:
Fountain: Brad Smith Official Twitter
Will Microsoft really honor this agreement? The FTC isn’t sure yet, including Sony, which has been trying to get regulators to halt the deal.