Microsoft has admitted Sony's PlayStation has "more exclusive games" and many are "better quality" than Xbox games.
As the firm's buyout of Activision hangs in balance, it has informed the Competition and Markets Authority (CMA) that it views its rival as the "dominant console provider".
Microsoft said: “In addition to being the dominant console provider, Sony is also a powerful game publisher.
Sony is roughly equivalent in size to Activision and nearly double the size of Microsoft's game publishing business.
“There were over 280 exclusive first and third-party titles on PlayStation in 2021, nearly five times as many as on Xbox.”
Microsoft added: “Sony has more exclusive games than Microsoft, many of which are better quality. […] Both Sony's and Nintendo's exclusive first-party games rank among the best-selling in Europe and worldwide. Current Sony exclusive content includes prominent first-party titles such as 'The Last of Us', 'Ghost of Tsushima', 'God of War', and 'Spider-Man'.”