Microsoft, owner of the rival Xbox console, moved to acquire game studio Activision Blizzard -- which produces "Call of Duty" -- in January 2022.

That move sparked fears of consolidation in the gaming industry, leading US and British regulators to hold up the finalization of the acquisition.

Sunday's "binding agreement" means that "Call of Duty" games will continue to be released on both the Xbox and the Sony Playstation.

"We are pleased to announce that Microsoft and PlayStation have signed a binding agreement to keep Call of Duty on PlayStation following the acquisition of Activision Blizzard," tweeted Microsoft's gaming head Phil Spencer.

"From Day One of this acquisition, we've been committed to addressing the concerns of regulators, platform and game developers, and consumers," said Microsoft President Brad Smith.

"Even after we cross the finish line for this deal's approval, we will remain focused on ensuring that 'Call of Duty' remains available on more platforms and for more consumers than ever before."

In December, ahead of the merger, Spencer had announced that Microsoft was committed to bringing "Call of Duty" to Nintendo, another console maker, following the completion of the acquisition.

Sony had previously sought to block Microsoft's acquisition of Activision Blizzard, which also produces mega-hits "Candy Crush" and "World of Warcraft."

The acquisition would make Microsoft the third biggest company in the gaming industry, in terms of revenue, behind Tencent and Sony.

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