Microsoft has criticized both Sony and the regulator in response to the UK competition regulator’s decision to open a second inquiry into its acquisition of Activision Blizzard
Since Microsoft announced its ambitions to acquire Activision Blizzard in January of this year, it appears Sony (their biggest competitor) has been doing everything it can to thwart the acquisition.
The UK’s CMA (Competition and Markets Authority) has announced its plans to launch a “phase 2” investigation. This investigation will probe even further into the proposed acquisition between Microsoft and Activision Blizzard.
The CMA has now made public the justifications for that choice and outlined its worries about how the transaction will affect Sony and other rivals in the console, subscription, and cloud gaming industries.
Microsoft has already had the deal approved by Brazil’s competition regulator earlier this month. The competition regulator said its job isn’t to defend “the particular interest of specific competitors.”
Microsoft has now criticized the UK’s CMA’s concerns saying they are “misplaced”. They also expressed that the CMA “adopts Sony’s complaints without the appropriate level of critical review.”
In a statement, Microsoft said:
“These unsupported theories of harm are not sufficient to justify a reference to Phase 2 [investigation]. The suggestion that the incumbent market leader, with clear and enduring market power, could be foreclosed by the third largest provider as a result of losing access to one title is not credible.”
Microsoft has said that Sony has acquired several studios since Microsoft’s acquisition announcement. These include Bungie, Haven Studios, Lasengle, and Savage Games.
They also claimed that there were:
“over 280 exclusive first and third-party titles on PlayStation in 2021, nearly five times as many as Xbox.”
The statement went on to say:
“Sony engages in conduct today which is reflective of its market power in console gaming, including increasing prices of its consoles without fear of losing market share.”
Adding that:
“While Sony may not welcome increased competition, it has the ability to adapt and compete. Gamers will ultimately benefit from this increased competition and choice.”
Microsoft reiterated that it wanted to retain Call of Duty on PlayStation consoles. Saying that doing so would “tarnish both the Call of Duty and Xbox brands.” Additionally, the business claimed that adding Activision Blizzard titles to Game Pass would give players more options.
Microsoft concluded by saying that if players decide to switch from PlayStation to Xbox, it would be because Xbox offers more options than its rival.
This acquisition situation seems to be far from over with Sony and others continually attempting to thwart Microsoft’s efforts.
How will it end? Well, as soon as we know we will let our loyal readers know too.