Microsoft Seals Nintendo Call of Duty Deal Amid Scrutiny of Activision Takeover

The binding agreement will mean games from the popular first-person shooter franchise developed by

Activision

(ATVI)—the target of a $68.7 billion

Microsoft

takeover—will become available for Nintendo gamers on the same day as they are for Xbox users, with full content parity, according to Microsoft.

The move to firm up the deal to bring Activision games from Xbox to Nintendo—first announced in December—comes as Microsoft continues to seek approval from regulators for its takeover of the game developer, announced in January 2022. If completed, the near $69 billion all-cash deal would be the largest in the history of the technology sector.

Smith’s announcement comes as the Microsoft president is due to lead a delegation of 18 executives at a meeting with senior European Union antitrust regulators during a closed hearing on Tuesday, according to a person familiar with the matter. Smith, along with Activision CEO Robert Kotick, are gauging the mood among officials ahead of a submission of remedies to address antitrust concerns and will seek to convince regulators the deal will boost competition, the person said.

The news of Microsoft and Activision’s meeting with European regulators this week was first reported by Reuters.

The tech giant’s deal to acquire one of the world’s largest game developers faces regulatory scrutiny amid concerns it will hurt competition in the market for gaming consoles, dominated by Microsoft, Nintendo, and

Sony

(SONY)—which makes the PlayStation. 

Earlier this month, the British competition regulator said an independent investigation into the acquisition found it could “result in higher prices, fewer choices, or less innovation for U.K. gamers.” In the U.S., the Federal Trade Commission in December announced it was seeking to stop the deal on competition grounds.

Write to Jack Denton at [email protected]