Microsoft's acquisition of Activision Blizzard,the maker of the best-selling Call of Duty games, has has raised concerns that it could lead to anti-competive behavior .
The $68.7 billion (around €61 billion) acquisition deal would would be the biggest of its kind in gaming industry history.
Sony was worried that Microsoft would make Call of Duty and other Activision games exclusive to Xbox.
Sunday's "binding agreement" means that Call of Duty will continue to be released on both the Xbox and the Sony Playstation.
What did Microsoft say?
The news of the deal was announced by Phil Spencer, Microsoft's gaming CEO.
"We look forward to a future where players globally have more choice to play their favorite games," Spencer wrote on Twitter.
Microsoft President Brad Smith said the company was commitment to address any concerns posed by regulators, developers or consumers.
"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," he said on Twitter.