Microsoft struggles to save Activision merger, says Sony protest ‘serves its interests’

Microsoft has criticized regulators at Sony and the UK in defiance of it Proposed acquisition from Activision Blizzard, saying the UK has relied too much on Sony’s arguments to “serve its own interests”.

UK Competition and Markets Authority (CMA) last month The deal transferred $68.7 billion to the realization of Phase 2, which may result in a ban on consolidation or a requirement to sell some parts of the business. The Capital Markets Authority issued a statement today full text of its referral decision, and Microsoft has provided Ars with Executive Summary From the latest response to the regulatory agency.

Sony argued that Microsoft could withdraw Call of duty from playstation, say Microsoft’s offer to keep the Activision Blizzard game series on PlayStation for at least another three years beyond the current agreement is insufficient.

In its filing with UK regulators, Microsoft said that PlayStation “has been the largest console platform for more than 20 years” and that it was “not credible” to “suggest” that the current market leader, with clear and enduring market strength, could be prevented by a third party. The largest provider as a result of losing access to a single address.” Microsoft continued in its response to the CMA:

In short, Sony is not prone to a hypothetical foreclosure strategy, and the decision to refer incorrectly is based on Sony’s self-service data which greatly exaggerates the importance of Call of duty and neglecting Sony’s apparent ability to respond competitively. The CMA’s assessment of this theory ignores its acknowledgment in the referral decision that the game industry is “dynamic”. While Sony may not welcome the increased competition, it has the ability to adapt and compete. Players will eventually benefit from this increased competition and choice.

Microsoft: Call of duty exaggerated fears

Microsoft provided its full response to the CMA’s Phase 1 analysis this week. The full document has yet to be published, but Microsoft released the executive summary to the public today.

“The damage theories in the CMA relate to one overarching concern: Activision Blizzard’s catalog of games – notably Call of duty Franchise – It will enable Xbox to outsmart its competitors in the gaming markets. Microsoft’s response said this concern is misplaced. “The referral decision fails to recognize the incredible array of popular and diverse game content available to market participants and exaggerates the importance of Activision Blizzard content to gaming competition.”

Microsoft said it “plans to make Call of duty The franchise is available to more players in more ways than would otherwise be the case in the opposite reality. The company also said that Sony is exercising its market power by “increasing the prices of its consoles without fear of losing market share.”

Microsoft also referred to Sony’s recent acquisitions of game studios, including Destiny 2-Bungie Maker. Sony also has minority stakes in elden ring-Maker of epic software and games. “There were more than 280 exclusive first- and third-party titles on PlayStation in 2021, nearly five times as many as there were on Xbox,” Microsoft said.

We contacted Sony today and will update this article if we get a response.