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Activision Blizzard’s proposed acquisition by Xbox was the subject of a Phase 2 inquiry by the UK’s Competition and Markets Authority (CMA) last month. A “significant decrease of competition within a market or marketplaces in the United Kingdom” was cited as a major concern in the judgement against Microsoft. In response to the CMA’s allegations that the acquisition might be detrimental to Sony in particular if Call of Duty were to become an exclusive, Microsoft has now officially responded. In its response, Microsoft attacks each of the CMA’s arguments and also cites industry experts who assert that the authorities are working to advance Sony’s interests.
Microsoft notably notes in their answer that PlayStation has held the top spot in the market for more than 20 years, and that its installed base of more than 150 million consoles makes it larger than Nintendo and more than twice as large as Xbox. Microsoft’s current third-place ranking in the video gaming sector is also mentioned in the statement. The business claims that it is “not credible” to think that having Call of Duty as an exclusive would close that gap.
“Even though Sony might not enjoy more competition, it is capable of competing. In the end, this increased competition and choice will be advantageous to gamers.” Naturally, Microsoft also cited private and public commitments to continue the franchise on the PlayStation platform. In fact, Microsoft is debating the prospect of making Call of Duty available on the Nintendo Switch.
It is interesting to note that Microsoft uses the Nintendo Switch’s performance as evidence that Call of Duty is not necessary for industry success. Nevertheless, the Switch was a huge hit for Nintendo. Microsoft also emphasizes Steam’s ongoing popularity, despite the fact that it has not featured a new Call of Duty game in more than three years.