UK regulator concerned Xbox Activision deal could ‘significantly weaken’ PlayStation
The UK’s Competition and Markets Authority (CMA) has expressed its concern that Microsoft‘s proposed acquisition of Activision Blizzard could “significantly weaken” PlayStation.
In a 35-point summary explaining its decision to potentially start a second phase of inquiry if its concerns aren’t addressed, the CMA cited numerous potential issues, most notably the impact the deal could have on Sony‘s ability to compete.
According to the regulator, this impact could be most felt during the launch of the next PlayStation console, when users could opt to purchase a new Xbox instead, should franchises become exclusive.
“The CMA is concerned that having full control over this powerful catalogue, especially in light of Microsoft’s already strong position in gaming consoles, operating systems, and cloud infrastructure, could result in Microsoft harming consumers by impairing Sony’s – Microsoft’s closest gaming rival – ability to compete,” the summary explains.
It added: “The CMA believes that in the short to medium term, the main rival that could be affected by this conduct would be Sony. Evidence suggests that Microsoft and Sony compete closely with each other in terms of content, target audience, and console technology.”
The report states that the CMA studied Microsoft’s past history with similar acquisitions, citing the fact that after purchasing Bethesda in 2021 it subsequently announced that Starfield and Elder Scrolls VI would be exclusive to Xbox.
“PlayStation currently has a larger share of the console gaming market than Xbox, but the CMA considers that Call of Duty is sufficiently important that losing access to it (or losing access on competitive terms) could significantly impact Sony’s revenues and user base,” the report
Read more on videogameschronicle.com
