Microsoft emphasizes its own weakness compared to Sony in lengthy response to UK agency's report.
Xbox has developed a novel tactic for defending its Activision Blizzard acquisition, which continues to wind its way through various regulatory bodies around the world: self-deprecation.
In response to claims by concerns raised by the UK's Competition and Markets Authority [CMA], Microsoft released a lengthy statement to
GamesIndustry.biz calling the criticism is “unsupported” and pointing to PlayStation’s leading place in the market as a reason why.
"The suggestion that the incumbent market leader, with clear and enduring market power, could be foreclosed by the third largest provider as a result of losing access to one title is not credible,” Microsoft said in a statement.
While Microsoft didn't share figures, the company says that if every
Call of Duty player on PlayStation's consoles switched to Xbox, "the PlayStation gamer base remaining would be significantly larger than Xbox."
"In short, Sony is not vulnerable to a hypothetical foreclosure strategy, and the Referral Decision incorrectly relies on self-serving statements by Sony which significantly exaggerate the importance of Call of Duty to it and neglect to account for Sony's clear ability to competitively respond," Microsoft’s statement said. "While Sony may not welcome increased competition, it has the ability to adapt and compete. Gamers will ultimately benefit from this increased competition and choice."
"Xbox, as a platform which is in last place in console, seventh place in PC and nowhere in mobile game distribution globally, has no incentive to do this – instead its incentive is to encourage the widespread adoption of cloud gaming technologies by as many providers as possible to encourage the major shift in consumer behaviour required for cloud gaming to succeed," the statement read.
Xbox responded to the UK's Competition and Markets Authority report by touting Sony's strength, pointing to its willingness to increase PS5 prices as evidence of its "clear and enduring market power."
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