Sony understands that it will not lose Call of Duty in favor of Xbox exclusivity. Here’s what it’s really about.

Sony is again appealing to regulators to block the Activision-Blizzard deal from Microsoft, which would see Xbox and Windows take control of major franchises like Call of Duty and Diablo.

Of course, Xbox is Sony’s biggest competitor in the console space, with PlayStation still the dominant platform in nearly every, if not all, major markets. Xbox has fought back hard, using high-value offerings like the more affordable Xbox Sand an all-you-can-eat subscription gaming service Xbox Game Pass. Microsoft is also seeking to compete with Amazon and other cloud companies in the emerging cloud gaming space, by providing Xbox games for phones, tablets and the web via live streaming.