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The Competition Markets Authority (CMA) said the updated bid had addressed concerns, after it blocked the original $69bn (£59bn) deal in April.

"Microsoft had the chance to restructure during our initial investigation but instead continued to insist on a package of measures that we told them simply wouldn't work.

"With the sale of Activision's cloud streaming rights to Ubisoft, we've made sure Microsoft can't have a stranglehold over this important and rapidly developing market," Ms Cardell said.

It further cements Microsoft as a video game giant, much to the consternation of its main rival Sony, owner of the PlayStation console.

Sony has strongly opposed this deal over concerns that big Activision titles like Call of Duty could become Xbox exclusives over time.

Following eight years in development and much anticipation, another large studio called Bethesda finally launched its new game Starfield in 2023 - but only on Xbox and PC.

The original article contains 378 words, the summary contains 150 words. Saved 60%. I'm a bot and I'm open source!