Microsoft isn’t pleased with Sony and the UK’s Competition and Markets Authority. The UK regulator signaled an in-depth assessment of Microsoft’s $68.7 billion deal to amass Activision Blizzard final month, and the CMA has now printed its full 76-page report (PDF) on its findings. The CMA says it has issues that Microsoft’s Activision Blizzard deal might reduce competitors in recreation consoles, subscriptions, and cloud gaming, however Microsoft thinks the regulator has merely been listening to Sony’s attorneys an excessive amount of.

Microsoft pleaded for its deal on the day of the Phase 2 determination final month, however now the gloves are nicely and really off. Microsoft describes the CMA’s issues as “misplaced” and says that the regulator “adopts Sony’s complaints without considering the potential harm to consumers” and “incorrectly relies on self-serving statements by Sony which significantly exaggerate the importance of Call of Duty.” Microsoft even accuses the CMA of adopting “Sony’s complaints without the appropriate level of critical review,” suggesting that the regulator is just simply listening an excessive amount of to what Sony has to say.

At the center of all of the backwards and forwards is entry to Call of Duty and issues round the way forward for recreation subscriptions. “The CMA recognizes that ABK’s newest games are not currently available on any subscription service on the day of release but considers that this may change as subscription services continue to grow,” says the UK regulator. “After the Merger, Microsoft would gain control of this important input and could use it to harm the competitiveness of its rivals.”

Microsoft’s full response to the CMA, seen by The Verge, additionally contains elements the place the corporate tries to, comically, make it appear like it by some means sucks at gaming and it could actually’t compete. Microsoft says Xbox “is in last place in console” and “seventh place in PC” and “nowhere in mobile game distribution globally,” and Microsoft argues it has no purpose to hurt or degrade rival cloud gaming providers because it needs to “encourage the major shift in consumer behavior required for cloud gaming to succeed.”

Microsoft may nicely be in final place in console gross sales in the course of the earlier era, but it surely’s actually investing billions of {dollars} to make sure any future Xbox gross sales aren’t lower than half of the PlayStation and that its Xbox Game Pass guess pays off.

Sony and Microsoft have additionally been battling it out over Call of Duty, and the CMA acknowledges this by revealing it’s involved about Sony’s future revenues associated to Call of Duty. “PlayStation currently has a larger share of the console gaming market than Xbox, but the CMA considers that Call of Duty is sufficiently important that losing access to it (or losing access on competitive terms) could significantly impact Sony’s revenues and user base.”

Sony has proven how vital Call of Duty is after it labeled Microsoft’s supply to maintain Call of Duty on PlayStation “inadequate on many levels.” The Verge revealed final month that Microsoft Gaming CEO and Xbox chief Phil Spencer made a written dedication to PlayStation head Jim Ryan earlier this yr to maintain Call of Duty on PlayStation for “several more years” past the prevailing advertising and marketing deal Sony has with Activision. “After almost 20 years of Call of Duty on PlayStation, their proposal was inadequate on many levels and failed to take account of the impact on our gamers,” stated PlayStation head Jim Ryan in response.

Now Microsoft says protecting Call of Duty on PlayStation is a “commercial imperative for the Xbox business and the economics of the transaction.” Microsoft says it could put income in danger if it pulled Call of Duty from PlayStation and that “Microsoft has been clear that it is counting on revenues from the distribution of Activision Blizzard games on Sony PlayStation.”

Microsoft additionally accuses Sony of not welcoming competitors from Xbox Game Pass and that Sony has determined to dam Game Pass on PlayStation. “This increased competition has not been welcomed by the market leader Sony, which has elected to protect its revenues from sales of newly released games, rather than offer gamers the choice of accessing them via its subscription, PlayStation Plus.” This comes simply months after Microsoft claimed, in authorized filings, that Sony pays for “blocking rights” to maintain video games off Xbox Game Pass.

If the UK battles are something to go by, this acquisition might get messy as Microsoft and Sony battle it out behind the scenes to sway regulators. Microsoft even has a dedicated website to spotlight its arguments because it seeks to persuade regulators that its large deal isn’t a foul one for avid gamers. We’re nonetheless months away from last regulator choices, however prepare for this battle to proceed to spill out onto the web’s streets.