Microsoft fights to save Activision merger, says Sony protest is “self-serving” - Ars Technica

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Microsoft slammed Sony and UK regulators amid a situation to its proposed acquisition of Activision Blizzard, saying the UK has relied excessively overmuch connected Sony's "self-serving" arguments.

The UK Competition & Markets Authority (CMA) past period referred the $68.7 cardinal deal to a Phase 2 investigation, which could effect successful the merger being prohibited oregon a request to merchantability immoderate parts of the business. The CMA contiguous released the full text of its referral decision, and Microsoft provided Ars with the executive summary of its latest effect to the regulatory agency.

Sony has argued that Microsoft could propulsion Call of Duty from PlayStation, saying Microsoft's connection to support the Activision Blizzard crippled bid connected PlayStation for astatine slightest different 3 years beyond the existent statement is inadequate.

In its filing with UK regulators, Microsoft said PlayStation "has been the largest console level for implicit 20 years" and that it's "not credible" to suggest "that the incumbent marketplace leader, with wide and enduring marketplace power, could beryllium foreclosed by the 3rd largest supplier arsenic a effect of losing entree to 1 title." Microsoft continued successful its effect to the CMA:

In short, Sony is not susceptible to a hypothetical foreclosure strategy, and the Referral Decision incorrectly relies connected self-serving statements by Sony which importantly exaggerate the value of Call of Duty to it and neglect to relationship for Sony's wide quality to competitively respond. The CMA's appraisal of this mentation ignores its acknowledgement successful the Referral Decision that the gaming manufacture is "dynamic." While Sony whitethorn not invited accrued competition, it has the quality to accommodate and compete. Gamers volition yet payment from this accrued contention and choice.

Microsoft: Call of Duty concerns overblown

Microsoft submitted its afloat effect to the CMA's Phase 1 investigation this week. The afloat papers isn't nationalist yet, but Microsoft made the enforcement summary nationalist today.

"The CMA's theories of harm subordinate to 1 overarching concern: that Activision Blizzard's crippled catalogue—in peculiar the Call of Duty franchise—will alteration Xbox to foreclose its competitors successful gaming markets. This interest is misplaced," Microsoft's effect said. "The Referral Decision fails to admit the unthinkable array of fashionable and divers gaming contented that is disposable to marketplace participants and overstates the value of Activision Blizzard's contented to contention successful gaming."

Microsoft said it "plans to marque the Call of Duty franchise disposable to much gamers successful much ways than would person been the lawsuit successful the counterfactual." The institution besides said that Sony wields its ain marketplace powerfulness by "increasing prices of its consoles without fearfulness of losing marketplace share."

Microsoft further pointed to Sony's ain caller acquisitions of crippled studios, including Destiny 2-maker Bungie. Sony besides has number stakes successful Elden Ring-maker From Software and Epic Games. "There were implicit 280 exclusive first- and third-party titles connected PlayStation successful 2021, astir 5 times arsenic galore arsenic connected Xbox," Microsoft said.

We contacted Sony contiguous and volition update this nonfiction if we get a response.