Xbox Responds to UK Regulator Concerns Over Activision/Blizzard Buyout
UK regulatory decision to extend Activision/Blizzard deal inquiry is criticized by Xbox, accuses them of "adopting Sony's complaints".
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| Xbox Responds to UK Regulator Concerns Over Activision/Blizzard Buyout |
A proposed $68.7 billion acquisition deal of Activision/Blizzard by Microsoft is currently under scrutiny by global competition regulators since its announcement and being investigated for a second time due to a few anti-trust concerns.
Despite getting clear approval of Brazil's Administrative Council for Economic Defense (CADE) with no restrictions or whatsoever, UK regulators expresses concerns over Activision/Blizzard buyout and Xbox responded to their decision.
UK's Competition and Markets Authority (CMA) recently detailed their concerns over possible impact of Microsoft's acquisition of ABK on console, game streaming and subscription service and Xbox says their concerns are "misplaced".
Microsoft called out CMA of "adopting Sony's complaints" without appropriate, critical review to expand their enquiry, as theories of market leader Sony being harmed for losing one single title by third largest competition isn't credible.
They also added that Sony may not welcome increased competition but they can still adapt to compete. Microsoft also pointed at Sony's leading market position, having a big install base of 150 million next to 63.7 million Xbox consoles.
Xbox owner noted its market power by referring to recent price hike of PlayStation 5 consoles without fear of losing market share. Meanwhile, Sony made acquisitions of Bungie and Haven Studios with a minority stake in FromSoftware.
Sony had over 280 first and third-party exclusive titles on PlayStation in 2021, which is almost five times as many as Xbox. In any ways, they are not vulnerable to a hypothetical foreclosure strategy as claimed in self-serving statements.
Also, Sony drastically exaggerated the importance of Call of Duty to them while ignoring their ability to respond competitively. Nevertheless, Microsoft reiterated their intention of keeping Activision's annual shooter title on PlayStation.
Taking away Call of Duty from rival console will tarnish both the series and Xbox brand, claims Microsoft. Moreover, bringing Activision/Blizzard games to Xbox Game Pass service offer a lot more choices to players across every platform.
Microsoft concluded saying that if players leave PlayStation for Xbox, it would likely be due to offering additional choice over its competitor. CMA summary express concern for PlayStation and supports decision to expand investigation.
