EU Official Says CMA Overstated Microsoft’s Share in Cloud Gaming Market

wccftech.com:

Following the European Union's decision to approve Microsoft's offer to acquire Activision Blizzard for $68.7 billion, the UK's equivalent regulator, the Competition and Markets Authority, didn't lose any time to voice its criticism and maintain its position in a series of tweets.

The CMA had blocked the deal in late April largely because it considered Microsoft's cloud gaming market share already dominant with an estimated 60-70%, which could grow even further with the power of Activision Blizzard's prized IPs.

However, that figure has been criticized by many analysts and industry members as unlikely to reflect the actual market conditions. In a report penned yesterday by the Financial Times, an EU official was quoted saying that the CMA had overstated Microsoft's share in cloud gaming by including many Game Pass subscribers who don't actually take advantage of cloud services.

To understand that reference, we need to take a step back. In August 2020, Microsoft announced that Game Pass Ultimate subscribers would get access to cloud gaming via the service previously known as xCloud. It was meant as a bonus perk to entice Xbox users to start playing on their mobile devices, such as phones and tablets. Later, it was expanded to PC and even older Xbox consoles, allowing Xbox One players access to Xbox Series S|X exclusives.

However, it is widely believed that a substantial portion of Game Pass Ultimate subscribers either tried xCloud once or twice and never looked back or didn't even bother checking out, having access to local PC or Xbox consoles capable of running the titles available in the Game Pass library. In some countries, xCloud isn't even available yet.

Moreover, while Game Pass Ultimate includes cloud gaming, the base