Sony skewers Microsoft for canceling Redfall on PS5, calls revised CMA report "surprising, unprecedented, and irrational"

Sony and Microsoft have released updated responses regarding a recent report from the UK's Competition and Markets Authority which walks back several of its concerns over the Xbox Activision deal, and what do you know, Sony is not happy while Microsoft is practically dancing in the streets. 

In its response to the addendum, Sony argues that "the CMA's reversal of its position on its consoles theory of harm is surprising, unprecedented, and irrational." Basically, the CMA is now focusing on the financial implications of Microsoft making Call of Duty exclusive to Xbox, with its updated report ruling that this "would result in a significant financial loss for Microsoft post-merger" and therefore not make a lot of sense.  

Despite the CMA's revised assessment of Microsoft's incentives, Sony is still focusing on the power this acquisition would give Microsoft, namely "the ability to foreclose PlayStation" and the CMA's "determination that such foreclosure would substantially lessen competition." Sony's argument is seemingly that even if the CMA sees no or lessened financial incentive for Microsoft to make Call of Duty exclusive, the company would still be able to do that after buying Activision, and it's leaning on Microsoft's previous post-acquisition behavior to make its point. 

This isn't the first time Sony's made this argument, but it has found new ammunition in the news that Redfall's planned PS5 version was canceled after Microsoft bought Zenimax and Bethesda. And yes, it is curious that this evidence is only coming up after an IGN report, which Sony directly cites. 

Microsoft claims it has not "pulled any games from PlayStation," but reports of Redfall's adjusted course came straight from the game's creative director. Sony has latched onto this, along with the likes of The Elder Scrolls 6 and Starfield, as evidence of Microsoft's willingness to make acquired IP Xbox exclusive. 

"Even though the studio had already put in the work to make a PlayStation version of the game, Microsoft decided to terminate this work and make the game exclusive to Xbox," Sony says of Redfall on PS5. "This experience provides further compelling evidence of Microsoft's ability and incentives to foreclose rivals to acquired games, together with its likely conduct post-transaction with respect to Call of Duty."  

The rest of Sony's response is basically poking holes in the CMA's analysis, describing its revised evaluation as being "vitiated by conceptual errors." Sony argues that the CMA understates Microsoft's gains from foreclosing PlayStation by "around 70%"; downplays the strategic impact of adding Activision games to Game Pass; and largely ignores the possibility of partial foreclosure – that is, keeping Call of Duty on PlayStation but in a worsened state. 

Amusingly, Sony also praises the discerning eye of "Call of Duty gamers," who it describes as "passionate, knowledgeable, and sophisticated." I'll let you decide if that's an accurate description of your average Call of Duty lobby. 

Microsoft, in its considerably shorter response, "welcomes the CMA's revised findings and agrees with the CMA's conclusion." Who could've seen that coming? Microsoft notably doesn't mention Redfall's canned PS5 version here, but – as predicted – it does lean on its string of deals with cloud gaming services as evidence that it won't withhold content. Basically, Sony's on the backfoot digging its heels in while Microsoft is replaying its greatest hits, and this mess isn't over yet. 

Activision CEO says he won't let Sony's "disappointing" behavior affect the publisher's long-term relationship with PlayStation.