The stock price of Activision Blizzard Inc. rose 3.6% in morning trading, after the company said it was preparing to offer an exclusive deal to Microsoft Corp. for its upcoming Xbox One video game console.
The company has been in talks with Microsoft since last summer about a new deal for its game studio, according to people familiar with the matter.
Activision’s stock is up nearly 60% this year.
Microsoft has been offering a partnership to Microsoft for at least three years, but the company has resisted.
The Xbox One is scheduled to launch in the second half of 2017.
Activision said its new deal with Microsoft would give it a “substantial lead in the gaming market.”
Microsoft said the Xbox One will be available for $499.99, $199.99 and $99.99.
The deal with Activision is contingent on Microsoft agreeing to a new agreement for a game studio.
Activision shares closed up $2.12, or 4.5%, at $54.60.