Microsoft has been keeping the Windows platform away from the gaming market in favor of Xbox, I'd imagine to avoid competing with themselves. Xbox has to have been getting subsidies from somewhere to run Game Pass. Despite all this help, they do seem to be stuck third place. Excluding Nintendo as a competitor seems wrong, it's not just about current-gen.

I don't play Activision/Blizzard games or use Xbox so I'm not really invested, but I tend to oppose market consolidation and monoculture whenever possible. That said, lately game releases have been pretty lackluster with some major flops and lots of remakes coming out. If the underdog thinks they can turn the tide by acquiring a major studio, I don't particularly want the government in the way either.