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However, in April 2024, the government body prevented the proposed purchase over concerns about the future of the cloud gaming market . Microsoft did present a solution to the CMA, which was deemed not adequate and thus rejected. As a result, both Microsoft and Activision Blizzard appealed the decision.

The C.M.A. initially blocked the deal because, it said, a merger between the maker of a top-selling console with the publisher of hit games threatened to stunt the development of the emerging area of cloud gaming technology.