Videogame market is north of $200 billion in total. The PC gaming market alone has a value of $37 billion. How much of that do people believe Microsoft has? Nowhere as much as people would think, even in the PC gaming market its miniscule.
What does Microsoft have that competes with the android store front, the Apple app store? Steam?
People also forget that apple tvs and amazon firesticks (while not respected for their gaming capabilities by hardcores like us) are also big venues for games as well, which further makes Microsoft's dedicated xbox consoles seem all the smaller in the grand scheme of the larger game market. Netflix, a massive streaming giant, have opened up their platform to supporting games also. Remember that games don't always come in the form of Horizon, God of War, Halo, Starfield and Elder Scrolls. They also come in the form of movie trivia games where you spend money to get new quizzes and new topics. Many people play these. Hell, I once played one with my friend and her two kids, and got addicted to the game on an Amazon fire stick. It's now a legit activity for get togethers.
Microsoft also still has Minecraft, the gold standard example of their fairness. Even spinoffs have continued to be supported on rival systems. Minecraft will feature heavy in Microsoft's case for the deal to regulators.
Regulators lean heavily in favor of companies, in order to better compete, coming up with disruptive ideas to change the way consumers interact with the business.
Is there any better example of such a thing in gaming than Xbox Game Pass? So now we enter a space where Microsoft can credibly say there are many more PS + subscribers than Game Pass subscribers. They can say they even offer a competing service, EA Play, to subscribers of their highest tier plan for Game Pass, as well as allowing people to sign up even without being part of Game Pass. They can also say they are welcoming further competition into their own platform, Ubisoft+.
I don't think many truly realize that Microsoft is playing a kind of 4D chess in order to get this deal passed that many have been largely overlooking, and it's been taking place seemingly for years, and an increased opportunity appeared with a troubled Activision Blizzard.
Also, the recent public announcement Microsoft made in response to a U.K. about making sure their subscription plans are fair and consumer focused? Yet another example.