On Thursday, the Federal Trade Commission announced a lawsuit to block Microsoft from acquiring Activision Blizzard, developers of the Call of Duty and Overwatch franchises. The FTC alleges the deal would give Microsoft an unfair advantage over its competitors in the gaming industry, essentially creating a monopoly.

The lawsuit, if successful, would put a snag in Microsoft's push into the still-nascent metaverse. The company has taken several steps in that direction, including joining Meta, main rival Sony, and others to create an "Open Metaverse.”

The FTC cited Microsoft's acquisition of Bethesda Games Studios, creators of the Fallout and Elder Scrolls franchise, and making its Starfield and Redfall games exclusive to its flagship Xbox console.