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The UK government is further investigating Activision’s purchase of Xbox



The UK’s Competition and Markets Authority revealed today that its investigation into Microsoft’s proposed purchase of Call of Duty maker Activision needs more time in a “phase two” study. The Initial findings have raised concerns About how “Microsoft can use its control over popular games like Call of Duty and World of Warcraft post-merger to harm rivals including recent and future rivals in multi-game subscription services and cloud gaming”.

If the authority’s concerns are not addressed, it will move on to the aforementioned “stage two investigation” where it will “reach a decision that serves the interests of UK gamers and businesses”. Concerns have been pointed out about how Microsoft could deny access to Activision games to existing and new companies in the gaming industry, or provide “access on very poor terms”.

In the short term, CMA believes that Sony will be the most affected by the purchase due to sharing a lot of similar content and target market. It also notes how Sony has a larger market share than Microsoft in the UK, which “could have a significant impact on Sony’s revenue and user base. This impact is particularly significant at the launch of next-generation consoles.” is likely to be felt, where gamers make fresh decisions about which console to buy. The CMA believes that the merger will, therefore, significantly harm Microsoft’s closest rival, to the detriment of overall competition in console gaming. and can weaken.”


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