The UK’s Competition and Markets Authority (CMA) has expressed concern over Microsoft’s acquisition of Activision Blizzard, saying the deal would hurt PlayStation and subscription offerings should Microsoft keep Activision Blizzard games off the platform.
The CMA also thinks it’s possible Microsoft could use Activision Blizzard and its other services to hurt streaming competitors Amazon, Google, and Nvidia.
Basically, according to the entity, the acquisition could lead to a “significant reduction in competition in gaming consoles, multi-game subscription services and cloud gaming services.”
The CMA is also concerned about game subscriptions, believing Activision Blizzard games may have been released on other subscription services without this deal.
But Microsoft says that’s not the case, and the panel’s “unsupported harm theories” weren’t sufficient to justify the CMA’s request for a Phase 2 investigation.
According to Microsoft, one of the CMA’s main concerns is the potential impact of the acquisition on PlayStation. Microsoft says the body shouldn’t be worried in the slightest as PlayStation has a much larger user base, with or without Activision Blizzard games.
The company brought up the fact that PlayStation currently has an install base of 150 million compared to Xbox’s install base of 63.7 million. Microsoft told GI.biz that the suggestion that Sony, the current market leader, “could be banned from the third-biggest player” for losing access to Call of Duty was “not credible”.
The company even stated that should every PlayStation Call of Duty player switch to Xbox, the PlayStation player base would still be “significantly larger than Xbox”.
“In short, Sony is not susceptible to a hypothetical foreclosure strategy,” and the recommendation decision is erroneously based on,” Microsoft said, adding that Sony’s “self-serving statements” “grossly exaggerate and neglect the importance of Call of Duty.” to explain Sony’s clear ability to respond competitively.”
Microsoft reiterated that it intends to keep Call of Duty on PlayStation, as a withdrawal from the system would “alienate” the fanbase and “tarnish both the Call of Duty and Xbox brands.”
The second phase of the CMA’s investigation is scheduled to conclude in January, with a decision expected by March 1.
https://www.vg247.com/playstation-user-base-is-significantly-larger-than-xbox-says-microsoft If every Call of Duty player defected to Xbox, PlayStation’s user base would still be “significantly larger,” says Microsoft