Microsoft Says PlayStation Gamer Base Would Dwarf Xbox Even If All Call of Duty PS Players Shifted Over

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Responding to the CMA’s decision to escalate its Microsoft-Activision Deal inquiry, Microsoft has released a detailed statement in which it breaks down many of the CMA’s concerns. Taking particular offense to Sony’s accusations of anti-competitive behavior, Microsoft pointed out Sony’s predominant console market share, and that the PlayStation user base would still dwarf that of Xbox even if all Call of Duty gamers on PlayStation moved to Xbox.

After talks with Google and PlayStation over Microsoft’s plans to acquire Activision-Blizzard, the UK’s Competition and Markets Authority (CMA) published a full report about its decision to refer its inquiry into the $68.7 billion deal for a thorough second-phase investigation. The Verge’s Tom Warren published excerpts of Microsoft’s response to the decision, where it singles out Sony’s series of claims and its alleged hypocrisy with regards to the competitive threat posed by the acquisition.

Microsoft certainly hasn’t held back in its response. It points out how Sony’s unparalleled market power (150 million+ plus consoles) has allowed it to raise prices for PlayStation consoles without hesitation, and that Activision’s Call of Duty franchise, the future of which Sony has based its opposition to the Microsoft-Activision deal on, is a relatively insignificant portion of the PlayStation business.

While the exact number of active Call of Duty gamers on PlayStation relative to the total number of monthly active users (MAUs) was omitted, Microsoft reveals that PlayStation would still have a much larger gamer base than Xbox were all those gamers to switch over to Xbox. Thus, Microsoft reveals that it simply does not have the ability to foreclose Sony out of the console market, and that the CMA’s concerns about Microsoft potentially using the Call of Duty franchise to hurt PlayStation are unfounded.

Phase Two of the CMA’s investigation has a statutory deadline of March 1, 2023, by which time the acquisition is expected to have obtained approval elsewhere. Regulatory authorities in Brazil and Saudi Arabia have already approved the deal as of last week.

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