In the latest development in its Phase 2 review of the Microsoft–Activision deal, the UK Competition and Markets Authority (CMA) has published six different game studios’ responses to its provisional findings released in February. While five of the companies have chosen to remain anonymous, all parties have expressed their support for the proposed acquisition with one claiming that the deal will help create “a more level playing field between Xbox and PlayStation.”

• Related Reading: Sony: Microsoft Call of Duty Offer “Will Irreparably Harm Competition,” Says Offer Info Redacted at the Request of MS

The CMA published Sony, Microsoft, and Activision’s full responses to its provisional findings today, with Sony notably accusing Microsoft of wanting to foreclose the former out of the Call of Duty business and referencing the latter’s past behavior with Bethesda’s previously-multi-platform IPs. Since it invited all market participants to comment on the acquisition when the provisional findings were released, the CMA has also published such responses from six different game companies.

Though five of the studios have provided their comments anonymously, all of them including Perfect Dark and console Minecraft developer 4J Studios have expressed their support for the acquisition:

• 4J Studios has stated that Microsoft never forced it to favor the latter’s formats over the course of a working relationship spanning over fifteen years and which saw the former develop Perfect Dark and ports of Banjo-Kazooie and Banjo-Tooie for the Xbox 360. 4J Studios further revealed that Microsoft facilitated its relationship with Mojang through which the studio took over console development duties for Minecraft, and that Microsoft encouraged it to develop the “Mario Mash Up” pack for Nintendo after the Mojang acquisition.
• Market Participant B does not believe that Microsoft’s acquisition of Activision Blizzard will “negatively impact consumers,” owing to both the diversity in consumers’ tastes (which ensures that no game is a “must-have” for any studio) as well as Microsoft’s commitments to make Activision Blizzard’s games available on all platforms.
• Market Participant C is an independent game studio that has worked with Sony, Activision, and Microsoft. The studio claims that Microsoft has honored all contracts and agreements with it over the last 25 years, and that the latter’s Call of Duty access commitments with Sony and Nintendo can be safely believed. It also states that consolidation in favor of cloud-based platforms is inevitable and does not necessarily warrant antitrust concerns. Furthermore, it makes the argument that a potential Tencent takeover of Activision Blizzard (the former is an investor in the latter) – in the event that the Microsoft-Activision deal is blocked – would pose an actual anticompetitive risk and solidify China’s unreciprocated access to Western markets.
• Market Participant D claims that while the deal’s “exact effects” are difficult to predict, it does not expect that its own AAA titles and distribution business on PC, Xbox, PlayStation, Nintendo, and mobile platforms will be jeopardized or significantly impacted.
• Market Participant E says that its game sales on PlayStation platforms are stagnating due to the latter’s prioritization of larger titles and financially-powerful market players. In contrast, the studio has garnered greater sales and more revenue on Xbox, where its titles have been able to reach larger audiences through dedicated sections on the Xbox store as well as through Xbox Game Pass. As such, the studio has argued that the acquisition is beneficial for smaller game developers, claiming that the deal will help create “a more level playing field between Xbox and PlayStation.”
• Market Participant F has called the arguments against the deal “slightly exaggerated and out of proportion,” and has expressed fears that blocking the deal could harm both competition and consumer-friendly initiatives. It also believes that Microsoft’s acquisition of Activision Blizzard will create a positive “change in scenery” for the latter’s employees and their work environment.

The full responses from these six studios as well as Sony, Microsoft, and Activision can be viewed here. Stay tuned here at MP1st for all upcoming developments in the situation.