Microsoft Applauds CMA Reversal on Activision Deal, While Sony Expresses Disappointment

The UK's Competition and Markets Authority has revised its stance on Microsoft's acquisition of Activision Blizzard, determining that the deal will not harm competition in the gaming console market. In response, Microsoft has welcomed the decision, while Sony has expressed strong objections, labeling the reversal as 'surprising, unprecedented, and irrational.' Sony argues that the CMA's revised assessment is flawed, as it allegedly ignores key evidence regarding Microsoft's potential incentives to restrict Activision content on PlayStation. Meanwhile, Microsoft maintains that it has no intention of limiting access to Activision games, including Call of Duty, on non-Xbox platforms. The company has proposed remedies to address concerns about cloud gaming, including licensing agreements with other cloud gaming services. A university professor has also contributed to the discussion, suggesting that cloud gaming is not a distinct market, but rather a term that encompasses various types of gaming services that utilize cloud streaming technology. The professor argues that consumers' low willingness to pay for standalone cloud gaming services indicates that it should not be considered a separate market.