The merger has been approved by EU and now US regulators.
The UK market might be small enough compared to the US and the EU that Microsoft and Activision might find it worthwhile to just leave the UK console game market if they had to choose between that and not being able to complete the merger.
On 5 May 2023, the CMA made an Interim Order pursuant to section 81 of the Act preventing each of Microsoft and Activision and all members of their Groups of Interconnected Bodies Corporate from acquiring in the other any interest conferring control within the meaning of section 26 of the Act
[0] https://www.gov.uk/cma-cases/microsoft-slash-activision-bliz...
[1] https://assets.publishing.service.gov.uk/media/6465ec16e1407...
https://www.theverge.com/2023/7/11/23791149/microsoft-activi...