Microsoft Fires Back At UK Regulator, Finding "Fundamental And Obvious Error" | Game News

7 hours ago
Bobby Kent

The UK s Competition and Markets Authority (CMA) released a number of responses to their investigation into the merger of Microsoft and Activision-Blizzard. One of these responses comes from Microsoft themselves, who accuse the CMA as making fundamental and obvious error in their calculations. Microsoft also calls out Sony, judging their opposition to be a self-serving attempt to protect its dominant market position.  

If Microsoft s criticisms are accurate, this would be a significant flaw in the CMA s argument against the merger. Back in Phase 1 of the investigation, the CMA calculated the Life Time Value, or LTV, that would come from players moving to Xbox for their acquired Activision Blizzard titles. What Microsoft points out however is that these calculations use a profit figure from five years of LTV, and a losses figure from just one single year. Looking at profits for five years without an equal amount of losses taken into consideration would skew the data. We re unable to validate this ourselves as the CMA withheld their calculations from the public. 

Xbox Series XMicrosoft says the calculations performed by the CMA are wrong.

This isn t the only blow dealt today to the CMA s protest of the merger. A number of responses from UK-based games companies were published by the CMA, with all six of them supporting the merger. A response from market participant E , kept anonymous at their request, said the deal would help to create a more level playing field between Xbox and PlayStation which, at this point in time, is sorely needed. Meanwhile, market participant D is a AAA developer who sees no risks to the deal, whilst market participant F says we honestly found the arguments against this acquisition to be slightly exaggerated and out of proportion.

Things aren t looking good at this point for CMA s objections to the deal, which are being countered not only by Microsoft, but by the wider UK gaming industry as a whole. We can expect a final report from the CMA sometime in April, where the ultimate decision will be made. 

How do you side in this? Let us know in the comments below, and keep your eyes on GameLuster for more gaming news.

Be sure to also to check out our massive Activision Blizzard acquisition page for the latest news and in-depth explainers on recent events!

Bobby is a staff writer at GameLuster based in Manchester, UK. He also freelances for other, less cool sites. Although his motor disability inspires him to write on accessibility, he also loves covering industry news, sharing opinions and more. When he isn’t playing Splatoon… he’s probably talking about Splatoon.

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