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How Sony Won Call of Duty DLC Exclusivity Away From Microsoft

Sony's existing partnership with Activision for Destiny helped.

492 Comments

For years now, all Call of Duty DLC has launched first on Xbox platforms. But that's changing this fall with Call of Duty: Black Ops III thanks to Activision electing to partner with Sony instead of Microsoft.

It's a big change for one of the biggest franchises in gaming. To dive deeper into the subject, we spoke with Adam Boyes, the PlayStation VP of Publisher & Developer Relations.

As you might expect, Boyes shied away from discussions specifics about the business terms of the deal, but he did offer some general insight into how the partnership came to be and what it means.

"Well, I think the first thing was we've had a great relationship with Activision around Destiny," Boyes said. "And I'm a huge fan of that."

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Sony's partnership with Activision for Destiny has been a deep one, with PlayStation fans getting all manner of Destiny content before Xbox players. Sony has even said that it is treating Destiny like a first-party game in some ways.

Boyes went on to say that Activision invited Boyes and his team on a trip to see Black Ops III in person. It didn't take long for Sony to be convinced that this was a game worth getting involved with.

"We fell in love instantly," Boyes said about Black Ops III, going on to describe the game as "transformative" for its various new features.

"As soon as I started playing it, I said, 'This feels incredible! You can wallride!' It's just so smooth; it's almost like poetic. And so obviously, we just continued talking with our partners at Activision and worked something out. And now we've got I think a great benefit to all the gamers."

Not only will all Black Ops III DLC launch first on PlayStation platforms, but the game's multiplayer beta will also premiere on PlayStation before coming to Xbox and PC.

Sony's exclusivity deals with Destiny and now Call of Duty may not be the last. Earlier this year, Sony Computer Entertainment CEO Andrew House said these kinds of third-party exclusivity arrangements are central to Sony's business strategy going forward.

For more on Black Ops III, check out GameSpot's hands-on impressions from E3 via the links below.

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genocide_223

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They managed to make BLOPS 3 looks worse than AW from last years presentation. I actually thought it looked cool last year, yet now it just looks blatantly sub average.....they really didn't try this time (not like they ever really do anyway).

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rzaartz

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Edited By rzaartz

Please can they stop making these space looking games. Hmmm maybe call of duty is no longer a war game. I got advanced warfare and cant even play it. The jumping around in the sky makes me feel sick.

Now they are bring DC comics into COD. Wall riding and the rest of those craps. They should better go back to modern shooters with great story line else i see this company crashing.

I can make a bet that blackops iii will be a failure.

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rosinmonkekyx17

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@rzaartz: Good for You, your opinion is noted.

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blacksheperd

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Wallride?? Umm where has this dude been? You can wallride in titanfall.
And so I guessed I missed the part where Sony said 3rd party exclusivity is central to their business model. If that is the case...I am not buying anything 3rd party from them. I hate temporary exclusivity or permanent for that matter on 3rd parties. That business model is completely anti gamer.

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jenovaschilld

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@blacksheperd: They are teaching wall ride techniques at Parris Island- nothing stops the communist advancement better then a military wallride.

it may be anti gamer but it is pro profit, gaming consumers need to start voting with their dollars not fanboy posts.

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kaluaj

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Or maybe Microsoft saw that the Call of duty series is losing on average 27% of sales each year for the past 3 title launches and thought that signing the exclusivity wasn't worth it. Call of duty was a world war staple, then had a break through with modern warfare and then went in the toilet after that.

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jenovaschilld

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@kaluaj: I have heard that argument before but you are still talking about the 800 lb FPS gorilla in the room that effects millions and millions of gaming consumers. It may be in the toilet but it is still a Billion dollar + franchise (that is with a capital 'B')

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kaluaj

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Edited By kaluaj

@jenovaschilld: Your argument is valid to a certain degree, but your missing a lot of pieces to the puzzle. Xbox standard publishing license for AAA titles is a flat rate license and then 2.5%, The flat rate is negotiated and is minimal maybe in the few million range, and that's per company not per title.

The most complete sales figures to be reviewed is Call of Duty Ghost which reached 10 Billion in Retail sales. So Microsoft made about $250 million from retail sales. Then subtract the operational cost and infrastructure put in place to support online gaming. While its just a portion of the overall Xbox live operation cost pie, lets throw out a cool $20 million for that so now your at $230 million, now take that and subtract 27% for Advanced warfare and subtract another 27% for Black Ops 3. So if your running financial projections for Microsoft you anticipated take home for Black Ops 3 is $123 million.

To the little people, this would seem to be a lot of money, to the gaming world this is peanuts. I would venture to say that Sony paid $100 million for the exclusive for black ops 3. People forget that while a great game can make 10 billion dollars we are also in an age where creating a AAA title is nearing a Billion just to make and that's before marketing and distribution.

Also as it was proven with Destiny, It showed that DLC exclusivity had minimal impact on retail copies sold, Destiny was a signed DLC exclusive to Sony but more copies were sold for XBOX. If that thought process holds true then why waist the money on paying for content exclusives.

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jenovaschilld

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@kaluaj: I do not know the actual % of licensing per title. I know that 1rst party studios related to third party studios is different per publisher and studio. I agree that 123 mil for 10mil + title moved is unbelievably low considering MS/Sony are still subsidizing each console sold.

But I can guarantee you that Sony will pay nothing NOW for DLC exclusivity only request less in licensing fees which may amount to more or less then 100mil over time. .... AAA title is nearing a Billion just to make.... That is just crazy as almost every AAA game reported in the last few years have rarely reached $60 mill http://kotaku.com/how-much-does-it-cost-to-make-a-big-video-game-1501413649 --

Console exclusivity, and timed DLC is actually good for gamers as it pumps money back into studios and publishers which ultimately gives us more and better games. The gaming wars this 8th gen - pales to past generations- has already produced wonderful results. From abandoning crazy anti-gamer policies to drastic console price drops. IT has drastically changed the way Sony interacts and works with all developers this gen. ALso - Gameindustryinternational.com reports that the shear amount of money being pumped into 1rst party, third party, new studios, indie studios are at an all time high for the industry, in part due to competition for the ever growing and earning video game industry.

Sony and microsoft who both gave up many 1rst party studios and investments during the beginning of the 7th gen are now jockeying for title exclusivity -even if timed- any way they can get it. So unless you are a fanboy, it will work out well for all of us gamers who love this hobby we call gaming.

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Hellknite190

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@kaluaj: Even if it is losing that many sales per year, its still the biggest FPS franchise out there. Why drop a cash cow like that?

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Gen007

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@Hellknite190: The game isn't exclusive though it's still gonna be on xbox so how is it dropped? if anything you lose money paying activision for early dlc and ads when COD is full saturation everyone knows about COD at this point and they dont need ads in thier face to remind them.

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ahpuck

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Edited By ahpuck

@kaluaj: Or maybe, Activision figure out there are more PS4s out there to sell their game to than xones, so they are marketing to them instead of the second place console. I don't particularly care, I find CoD to be super boring.

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TimberWolf_CLT

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Here's a thought: Sony can have it, please... Microsoft did well to pass on this.

jmho

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Jako998

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CoD was at its prime when MW 1 and 2 were out ( and a little bit of Black ops 1) . After that CoD has been on its Downfall ever since. I don't know why Sony is happy about this when they are only getting Leftovers of a Franchise that's Dying.

Microsoft got what they needed from the game and money. They don't need it anymore.

Microsoft losing this Deal was probably the best thing that could happen to Microsoft, Now Microsoft can focus on something else that's better IMO.

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BDRTFM

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Edited By BDRTFM

@jako998: The thing is, Black Ops is very well liked. I'm tired of all COD games but, there is a lot of hype for this game as usual. People like Treyarch's games. Of the few COD games I liked, BO1 and BO2 are two of my favorites.

I just can't get passed that idiot in the picture jumping with a bow though. Who the hell does that? Did anybody at Treyarch bother to try using a compound bow? Jumping in the air with a 50# drawn bow is ludicrous. You wouldn't hit shit. At least, not what you were planning on hitting anyway. You also need your body well anchored to be able to draw the bow in the first place. You can't pull a compound in mid-air let alone do it in time to pull, aim and release. Absolutely stupid.

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limelight022

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@jako998: Each game sells 10+ million units- how is that a dying franchise????

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vinion2000

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Edited By vinion2000

@limelight022: COD prior to BO2 to a large extent generated great post sale revenue and each game's life cycle extends way beyond a year sustained by excellent DLC sales. Black Ops2 was probably the first time they started to lose traction with DLC. The garbageGhost and Advance Warfare are both (rightfully) failures. AD being the worse COD released to date.

You know things are bad when Activision has to go back to multiplayer demos just to drum up more users. The last MP demo was World at War.

So yeah COD is still a multi-million franchise but how much of Activision is built upon sustained Cod performance? They have never tapped into Sony's user base like this and the PS4 is doing well. Not to mention the number of ex-360 owners and you have your reason for Activision switch.

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IndoJimbo

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@jako998: My thoughts exactly.

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HenrySix

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lol xbox one fans were begging MS not to show that CoD stuff at E3. i'm pretty sure they were excited to not see it. they were tired of that stuff. hopefully ps4 fans will enjoy.

MS not pursuing this was a good move.

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Jako998

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@HenrySix: Agreed. Sony is only getting the Leftovers now .

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DjentMaven

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@jako998: Hmmm yeah ok. Despite COD haterade with many message board alumni(to be honest I hate COD, always have since they left WW2) It is still the best selling franchise year after year after year. I mean its not even close. So no, they are getting more than "leftovers"

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vinion2000

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Edited By vinion2000

@djentmaven: Losing Cod might be a good thing for M$. COD's FPS dominance has caused a gaping hole in the genre and nobody can fix it because everyone plays COD. Now maybe some attention can be shifted to games like Rainbow Six or Battlefront hell Halo might fair better now that they don't have to be committed to pushing Call of Duty. Which I think is what most Xbox gamers want right now.

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brunod_f

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Hm maybe i'll give it a try. Last COD game i've bought was MW2.

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PayneKiller

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@brunod_f: that was the last great one

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CrepingDeath

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Haven't brought a Call of Duty game since MW2

No reason to.

Same old sh*t every single game.

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Brakkyn

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@crepingdeath: Can you be more specific? What about the franchise gets to you the most? What do you think could or should be done differently?

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nikon133

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@Brakkyn said:

@crepingdeath: Can you be more specific? What about the franchise gets to you the most? What do you think could or should be done differently?

Much as I am concerned...

Extremely short and heavily scripted SP campaign, not much replay value.

Not much changed in MP. Considering that first CoD was awesome because of some (for the time being) massive fights in campaign (I still remember Russian front levels fondly), I was expecting that CoD multiplayer will develop in that direction. More players in match, vehicles, aircrafts... destructive environments? Yes I know I'm basically talking about Battlefield here, but I do prefer that approach to multiplayer, and was hoping back in BF2 days that CoD will be trying to better that formula, rather than sticking to their own, simplified ways.

With all that being said, I have skipped BF4 as well. While I like big battles and vehicles, I has disapointed with BF3 servers renting. I was Premium player from NZ and eventually could not find more than a few official servers where I could play as game was designed to be played, not as god-admins were making out of it for their fun. If game was free to play, that would be kinda OK, but for game I paid full price for, and purchased additional Premium content, I really felt ripped-off.

My last concern was lack of home server. What happens when publisher decides to kill a game? My friends and I still play BF2, L4D on lan parties and online. I would forgive them above mentioned shortcomings have they promised to release home server once they decide to cancel support, but that hasn't happened either.

Thus Planetside 2 is my go-to multiplayer FPS for last 2.5 years, and will be in foreseeable future. Looking forward Division and new Ghost Recon - been missing some fresh co-op lately...

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CrepingDeath

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@Brakkyn:

how about.....

Not releasing it every single year and causing general fatigue among the consumer?

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360ru13r

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This isn't really suprising seeing Destiny was promoted for the PS4 when it was first revealed. So it is natural to assume that the next COD is about to be pushed heavy toward the PS4 as well. Now personally I don't care for COD so that not a big deal to me. Now don't be surprise if EA does the same thing for MS seeing as they have access to EA Access and the new Mass Effect Assension or whatever it is called has special stuff just for MS users but I could be wrong. Time will tell.

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Seven7Swords

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So... Wall riding in first person. Hmmm.... Well Mirror's Edge did that. While shooting? Hmmm.... Titan Fall did that, too. Uh, I don't see why he'd be so OMG "You can wall ride!"

Aside from that, I love how Sony's Media Entertainment division has all this month to throw at Publishers for exclusivity while the rest of the conglomerate struggles. Some times I worry my PS4 will over heat while my XBox One has been a black dust collector since...I dunno...I beat Dragon Age III last year.

You know, I really wish business deals like this didn't go down. Situations like this just feed the fires of console wars between fan boys, companies are basically paid to neglect fans on the opposing console, marketing used to exploit customers are everywhere.... I understand development cost for AAA games today are high but plenty of companies make quality AAA games with out nickle and dime'n their fans and accepting bribes to alienate fans on another console.

...sad really...

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Jetro290

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OMG, Green Arrow is in the upcoming game too?! When did Activision do an exclusive deal with DC? That is awesome!

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rzaartz

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@jetro290: lool. so funny

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babyjoker1221

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MS was smart to let that exclusivity end. COD as a whole is going downhill. It used to be a top notch modern era fps. Now it's a futuristic titanfall ripoff.

That's not to say that it doesn't still have a huge player base. It surely is the most expensive game to get an exclusivity deal with, and simply isn't worth it anymore.

This is a win for MS more so than a win for Sony.

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uk_friday

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who cares its crap ops 3...nobody cares anymore

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Suikogaiden

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@uk_friday:

Wrong, 12 year olds, angry loners and ADD manchildren care.

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uk_friday

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@Suikogaiden: completely agree accept its ADHD not ADD and you also forgot 30+ year old virgins

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Suikogaiden

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Edited By Suikogaiden

@uk_friday:

ADD and ADHD is the same thing.

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sargentpsgamer

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Edited By sargentpsgamer

Simple, Sony has no games coming out this Fall and needed something so they threw money at Activision. Coming from a PS4 owner too. (And don't bother listing all the stupid re-release crap, I don't care)

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minouti93

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" You can wall ride! " ... OMMG What a revolutioooooon ! That changes everything ! \sarcasm

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