Microsoft argues CMA’s calculations on Activision deal are flawed, Verge says

Microsoft (MSFT) is claming that the financial modeling used by the U.K.’s Competition and Markets Authority around the Xbox maker’s potential takeover of Activision Blizzard (ATVI) is flawed, The Verge’s Tom Warren reports. The CMA’s model calculated that Microsoft could turn a profit by withholding "Call of Duty" games from PlayStation (SONY) consoles to draw former Sony fans to Xbox, the author says. Microsoft argues that the model, which compares gains on a five-year basis to losses on a one-year basis, "massively skews the results," the author notes. "Unfortunately, there are clear errors in the figures being used to value the small number of Sony customers who might move to Xbox in the absence of Call of Duty (CoD)," says Rima Alaily, corporate vice president and deputy general counsel for Microsoft, told The Verge. "As we’ve always said, any realistic modeling of the true cost of removing CoD from PlayStation players clearly demonstrates that there is absolutely no financial incentive for us to do so. Which is why we have repeatedly said we won’t. Our actions demonstrate that we want to bring more games to more people, not less." Reference Link