really don't understand why they chose to focus so much on harm to Sony, given their commanding lead in the console market and the difficulty of proving that Microsoft was likely to break its agreements to keep COD on PlayStation
That's the crux of it, isn't it?
Big Tech running unchecked, buying startups and established players in order to gatekeep content left and right is a big problem. From Epic to Adobe, Meta, Amazon, Microsoft and whomever else.
There are unlikely to be any legalization efforts on this front, something that could actually scrutinize these companies and how they already do business, let alone nascent markets like AI and Cloud. With all this bullshit going on, the FTC and CMA can't competently put together a case that shows harm to consumers and instead spend all their efforts on basically how losing Call of Duty could harm Sony (and I guess Sony-only gamers)?
Is that really the best they could do? And while this is happening, the same FTC and CMA are not contesting egregious purchases like Microsoft gobbling up AI companies, or Amazon buying up the smart-vacuum segment for themselves, and even regulators using those as an example of how they are fine with Big Tech gobbling up as many pieces of other segments they obviously don't understand, as long as it isn't $70B worth at a time.
Regulators obviously don't understand the industry, but worse yet, they really couldn't give a shit about consumers either and it showed. Where are the protection efforts on pricing, foreclosing other segments through cutthroat exclusive deals, gambling addiction and its focus on minors, etc. Instead they are worried if Playstation losing Call of Duty might be a problem for Sony...
The reality is I was never bothered with the MS acquisition of Acti/Blizz because I care about few of their games, I only play on PC, but most importantly I feel like most gaming IP is easily replaceable. OK, sometimes not that easily in cases like CoD, granted- but at least side-stepped; see all the indie success stories in the PC space, like Battlebit vs Battlefield, but even other examples like new "it" games like PUBG, Fortnite, Apex, Destiny, etc. that could come out of anywhere really.
The other reason is that Activision and Blizzard were well on their way to fucking up their own efforts just fine. That's part of the reason Microsoft saw the discounted price and did the math. People act mad about Activision IP being gobbled up and I ask... what fucking IP? They basically have all their studios on CoD, and regularly kill all their efforts on whatever other IP someone is passionate about.
In general, in places like ERA and elsewhere there is a lot of handwringing and unwillingness to accept those reactions they are having are as much genuine concern for "consumers", as they are just a feeling of loss when their unhealthy emotional attachment to the Sony brand is being threatened. That any change to the status quo is scary. These are some of the same people that argue incessantly how Sony games coming to Steam cheaper is bad for the platform and Sony themselves (so much concern for consumers and the industry, right?).
It's not surprising that in other spaces, like the PC space where we've seen everything from big publishers declaring the platform dead, to all sorts of IPs leaving en masse to them come crawling back and all sorts of fuckery in between, there's a more indifferent feeling towards what it means for Sony and whom should they buy next to "retaliate" to not be left behind (the 2:1 market leader of the console industry), and more actual focus on long term repercussions, both postive and negative.
Let's be clear. A world where Microsoft is the dominant force on gaming and by extension PC is not something anyone wants. And the fact that the double whammy of Starfield having a good showing, and the acquisition clearing some hurdles has emboldened them to start raising prices, changing Game Pass back-end stacking, and even more fuckery on the regional pricing front should have us all wary of what it could actually be if they were on top. But for now, I've seen enough Microsoft to know they are just as likely to mess it up, billions and all.
And gaming will be fine.