Microsoft says UK regulator's concerns over Activision Blizzard deal are "misplaced"

gamedeveloper.com:

Microsoft has sought to counter arguments made by UK regulator the Competition Markets Authority (CMA) that suggest its pending acquisition of Activision Blizzard could harm rivals, and in particular leave PlayStation maker Sony at a significant disadvantage.

In a wide-ranging response, the company has described the CMA's concerns as "misplaced" and says the regulator's overarching concern that the $68.7 million acquisition will allow it to drive competitors out of business is "unsupported" and based on "self-serving statements by Sony."

There's a lot to take in here (33 pages, in fact), but Microsoft is essentially accusing Sony of exaggerating the importance of the Call of Duty franchise to its business in its own conversations with the CMA. Microsoft also claims the regulator has neglected to account for Sony's "clear ability to competitively respond" and its position as a market leader.

For instance, Microsoft claims Sony is positioning itself as a vulnerable when "PlayStation has been the largest console platform for over 20 years, with an installed base of over 150 million consoles making it larger than Nintendo and more than double the size of Xbox."

"Sony’s installed base at the end of 2021 was 151.4 million, as compared to the Xbox installed base of 63.7 million," added Microsoft.

Microsoft also highlighted an agreement between Activision Blizzard and Sony that "includes restrictions on the ability of Activision Blizzard to place Call of Duty titles on Game Pass for a number of years" as evidence of its dominance and influence.

Although Microsoft has pledged to continue honoring existing contractual obligations that Activision Blizzard has with other platforms, it was also candid about the fact it will eventually