The CMA noted that this would likely have a knock-on detrimental effect for consumers, with a softening of competition giving rise to the potential for higher prices, reduced range, lower quality, worse service and/or reduced innovation. This would limit competition from rivals like Sony (in consoles) and nascent competition in the evolving cloud gaming space, by withholding access to these key titles or providing access on materially worse terms. The CMA has provisionally found that, given Microsoft’s strong position in gaming consoles, operating systems, and cloud infrastructure, its acquisition of Activision could harm consumers through an input foreclosure strategy. The CMA has identified concerns about Microsoft's proposed acquisition of Activision’s catalogue of gaming titles, as certain titles, notably Call of Duty (CoD), are key inputs for Microsoft’s rivals in console gaming, and potentially also for the growing market for cloud gaming services.
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