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The UK games sector was in favour of Microsoft's bid for US firm Activision being approved, according to the man who led the company behind Tomb Raider. Sir Ian Livingstone, also co-founder of Games Workshop, said it would be "odd" if the UK was the only place to object. The blocking of the deal by the UK regulator provoked a furious response from Microsoft, with its president saying the move was "bad for Britain".

Gareth Sutcliffe, senior games analyst at Enders Analysis, said the deal "has been in trouble for a while".

On Dana Strong: “She’s a very thoughtful and responsible businesswoman,” said Claire Enders. “When Stephen van Rooyen became chief executive in the UK and then she came in, you had a double team that were very committed to these goals of being a best practice company.”

Claire said “Mr. Sharp was a most effective chair at the most delicate time in its history and ensured its future,” She said the deal was a “miracle,” given the hostility many in the government felt toward the BBC.

Gareth Sutcliffe, senior games analyst at Enders Analysis, said Microsoft had misjudged its approach.

"The signs were clear for months that this deal was in trouble with UK regulators and yet Microsoft executives didn't prioritise it or heed the evidence that it was," he told the BBC.

Mr Sutcliffe added that Mr Smith's comments about the UK were "somewhat redundant".

"They [Microsoft] had ample opportunity to do things differently over the past 16 months - they've not provided a convincing enough case."

“Amazon's coming under a bit more scrutiny with fewer breakthrough hits than they should be having,” says Tom Harrington at Enders Analysis. “It hasn't been helped by industry perception that they’re not creating an identity for their programming - they're never that convincing at defining what an Amazon show is.”

"The CMA is effectively rewarding PlayStation and Sony who wants to maintain the status quo of expensive console and full price games," said Gareth Sutcliffe, at Enders Analysis. He said Microsoft was being ‘punished for its poor handling of regulator concerns’ and would now need to a new plan to achieve a merger.

Rejection could imperil the position of Phil Spencer, the head of Microsoft’s gaming division who, alongside Smith, was the main driving force behind efforts to get regulatory approval, he said. "It’s hard to see how Spencer could stay if this fails. He was a big part of the problem."

Gareth Sutcliffe, at Enders Analysis, a media research group, said: “The fact that the cloud gaming market is so nascent makes the CMA’s decision seem querulous. This decision is more a clear reflection of the CMA’s lack of trust in Microsoft and the dismissive way that Microsoft has responded to regulator concerns.”

Claire Enders, an analyst who has followed Murdoch’s businesses for decades, described Carlson’s removal as “typical” for the media scion whose unsentimental nature helped inspire the character of Logan Roy in HBO’s Succession.

“It’s a clean-up operation, a typical Murdoch move,” said Enders. “Someone has to carry the can.”