Xbox responds to CMA concerns about buying Activision Blizzard

Last month, the UK’s Competition and Markets Authority (CMA) decided it needed to achieve phase two in its proposed Xbox purchase of Activision Blizzard. The ruling was highly critical of Microsoft, citing concerns of “a significant reduction in competition within a market or markets in the UK”. Microsoft has now released an official response, following CMA claims that the purchase could hurt Sony in particular if it becomes a Call of Duty exclusive. Microsoft’s response comes after each of the CMA’s points, while also citing industry experts who claim regulators are trying to protect Sony’s interests.

In the response, Microsoft specifically mentions the fact that PlayStation has been the market leader for over 20 years “with an installed base of more than 150 million consoles, making it larger than Nintendo and more than twice the size of Xbox.” The response also points to Microsoft’s current third place in the video game industry. The company suggests that the idea that having Call of Duty as an exclusive would fill that gap “is not credible.”

“Although Sony may not welcome increased competition, it has the ability to adapt and compete. Gamers will ultimately benefit from this increased competition and choice,” the response read.

Of course, Microsoft has also indicated its public and private assurances to maintain the franchise on PlayStation platforms. In fact, Microsoft has also discussed the possibility of bringing Call of Duty to the Nintendo Switch. Interestingly enough, Microsoft cites the success of the Nintendo Switch as evidence that Call of Duty is not necessary to succeed in the industry, as there is not a single Call of Duty game currently available on the system; Despite this, Nintendo has had massive success with the Switch. Microsoft also cites the continued success of Steam, which has not hosted the new Call of Duty game in more than three years.

It remains to be seen if Microsoft’s response will affect regulators, but the company makes a number of valid points! Readers interested in learning more can do so over here.

Do you think Microsoft’s purchase of Activision Blizzard will hurt competition? How do you feel about Microsoft’s response? Tell us in the comments or share your thoughts directly on Twitter at Tweet embed To talk about all things gaming!

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