Activision Blizzard seems to bring a load of complexity in its name. After several controversies within the studio, Microsoft acquired the creator of Call of Duty in order to grow its video game business, but also seeking to dispel internal problems. However, the acquisition is not being easy.
The Competition and Markets Authority of the United Kingdom (CMA), because it believes that it can harm the industry and other companies such as Sony’s PlayStation .
After this ruling was made known, the company led by Satya Nadella responded to the CMA arguing that Sony’s complaints are ‘exaggerated’ .
Microsoft argued that Xbox is at a disadvantage compared to other large companies in the sector, so it is only trying to compete with the acquisition of Activision Blizzard. He also noted that Sony and PlayStation have what it takes to compete and adapt after the acquisition.
“The suggestion that the current market leader, with clear and lasting market power, could be excluded by the third largest provider as a result of losing access to a title, is not credible (…) The player base of PlayStation would still be significantly bigger than Xbox,” Microsoft said.
He also took the opportunity to point out that the Japanese company has acquired other development studios, which has granted it the exclusivity of 280 titles during 2021, five times more than those that Xbox had.
“Sony is not vulnerable to a hypothetical foreclosure strategy, and the referral decision is incorrectly based on complacent statements by Sony that significantly exaggerate the importance of Call of Duty to it and disregard the clear ability to respond competitively,” he said. Microsoft.
He also emphasized that his Xbox Cloud Gaming service does not use Azure and specified that his on-demand business is still under development.
“Harming or downgrading rival services would significantly delay the adoption of this technology, protecting the market leaders (ie Sony on console, Apple and Google on mobile, as well as Steam on PC). Xbox, as a platform that ranks last in consoles, 7th in PC, and no place in mobile game distribution globally, has no incentive to do this; instead, their incentive is to encourage widespread adoption of cloud gaming technologies by as many providers as possible,” Microsoft concluded.
With information from Reuters and Bloomberg.