Microsoft Activision Agreement faces its first real challenge in the UK, where the Competition Market Authority (CMA) has raised concerns about its impact on competition. The regulator released a lengthy statement claiming the merger could “significantly undermine” PlayStation, and as a result is considering subjecting the proposed deal to a second round of investigation. On Wednesday, Xbox CEO Phil Spencer wrote a lengthy blog highlighting that Microsoft has no intention of keeping games like Call of Duty off the PlayStation.
Why CMA Worries About Dealing with Microsoft Activision
The CMA admits that the PlayStation is more popular than the Xbox, but losing access to Call of Duty could tilt disproportionately in Microsoft’s favor. The regulator believes that not only will it significantly affect Sony’s third-party earnings, but it could also “significantly undermine” PlayStation, especially when it comes time for the next generation of consoles. You would choose a game like Call of Duty with more exclusive games that were once multi-platform. The CMA is also concerned that Microsoft will be able to weed out rivals and new entrants with its significantly expanded subscription service after the acquisition.
The CMA added that the same three companies (Sony, Nintendo, and Microsoft) have dominated the console market for the past 20 years, and one of the reasons new entrants are struggling is because of the country’s strong network. claims to be. industry. According to the regulator, popular consoles will attract “better content”, which in turn will attract more gamers to popular consoles. “This self-enhancing mechanism makes it more difficult for new entrants without a large user base or excellent existing game content to enter and grow in the market,” the CMA wrote.
Microsoft was ordered to address the CMA concerns on Sept. 8, but its failure to do so will see its Acquisition of Activision Blizzard come under further scrutiny.
