Enlarge / Sony's PlayStation 5. (credit: Sony)

UK regulators reviewing Microsoft's proposed acquisition of Activision Blizzard reversed their stance on a key question today, saying they no longer believe Microsoft would remove the Call of Duty franchise from Sony's PlayStation consoles.

Last month, the UK Competition and Markets Authority (CMA) tentatively concluded that a combined Microsoft/Activision Blizzard would harm competition in console gaming. At the time, the CMA said evidence showed that "Microsoft would find it commercially beneficial to make Activision's games exclusive to its own consoles (or only available on PlayStation under materially worse conditions)." The agency also raised concerns about the merger affecting rivals in cloud gaming.

The preliminary finding was a victory for Sony, which has consistently expressed doubts about Microsoft's promise to keep putting Call of Duty games on PlayStation. But Microsoft argued that the CMA's financial model was flawed and was able to convince the agency to reverse its conclusion. In an announcement today, the CMA said it "received a significant amount of new evidence."

Enlarge (credit: NurPhoto / Contributor | NurPhoto)

Last fall, it looked like trouble for Microsoft when the European Union launched an in-depth investigation into its acquisition of Activision, but it now seems that Microsoft will emerge victorious. Three people familiar with the European Commission’s opinion on the matter told Reuters that, by agreeing to make a few more concessions, Microsoft will likely win EU antitrust approval on April 25.

According to Reuters, the European Commission is not expected to ask Microsoft to divest large parts of Activision—like separating out its Call of Duty business—to win approval. Instead, long-term licensing deals of lucrative games that Microsoft has offered to rivals could suffice, in addition to agreeing to “other behavioral remedies to allay concerns of other parties than Sony,” one insider told Reuters.

Microsoft declined Ars' request to comment, but the company told Reuters that it is "committed to offering effective and easily enforceable solutions that address the European Commission's concerns." Microsoft has previously opposed any proposed remedies forcing the merged companies to sell the Call of Duty franchise.

Enlarge / Can Call of Duty run on the existing Switch? Does Microsoft have inside details on Nintendo's next hardware? Or are we in for some contractually obligated potato skirmishes? (credit: Aurich Lawson)

[Update 3:35pm 02/21: This post has been updated with information about Microsoft's deal with Nvidia's GeForce Now, along with comments from Brad Smith in Brussels regarding both Nintendo and Nvidia deals.]

Microsoft appears to have made good on a promise to offer Call of Duty on Nintendo devices, a move seemingly aimed at calming antitrust concerns about its acquisition of Activision Blizzard.

Microsoft President and Vice-Chair Brad Smith tweeted the news early Tuesday morning, stating that Microsoft had "signed a binding 10-year contract to bring Xbox games to Nintendo's gamers." The contract is "just part of our commitment to bring Xbox games and Activision titles" to "more players on more platforms," Smith wrote.