In a major victory for Microsoft, the UK competition watchdog is convinced that Microsoft’s proposed acquisition of Call Of Duty developer Activision Blizzard wouldn’t have a negative impact on the console gaming market.

“The transaction will not result in a substantial lessening of competition in relation to console gaming in the UK,” the CMA said, following a period of consultation with various stakeholders.

In fact, the Competition and Markets Authority now feels that, should Microsoft choose to make the likes of Call Of Duty and World Of Warcraft exclusive to its own Xbox consoles, “this strategy would be significantly loss-making”

Martin Coleman, chair of the independent panel conducting the CMA investigation, said: “Provisional findings are a key aspect of the merger process and are explicitly designed to give the businesses involved, and any interested third parties, the chance to respond with new evidence before we make a final decision.

“Having considered the additional evidence provided, we have now provisionally concluded that the merger will not result in a substantial lessening of competition in console gaming services because the cost to Microsoft of withholding Call Of Duty from PlayStation would outweigh any gains from taking such action.”

The CMA’s report is due to be published by April 26.