Microsoft has claimed the Games Pass subscription service is damaging to game sales.

Speaking to the UK’s Competition and Markets Authority (CMA) amid the concerns surrounding the firm's proposed acquisition of Activision, Microsoft claimed that adding games to the service would lead to the "cannibalisation of sales".

However, an Xbox spokesperson told NME: “We’re focused on helping game creators of all sizes maximise the total financial value they receive through Game Pass. Each game is unique, so we work closely with creators to build a custom program to reflect what they need, ensure they are compensated financially for their participation in the service, and allow room for creativity and innovation. As a result, the number of developers interested in working with Game Pass continues to grow.”

The CMA, which is yet to file its official report of its findings, has accused Microsoft of trying to "damage competition" with the potential merger.

The United States Federal Trade Commission wants the acquisition to be blocked.

Microsoft recently insisted it's "confident" it can address any concerns.

The technology giant is committed to “finding a path forward” for the $69 billion deal after the European Union recently expressed some concerns about the move.

A Microsoft spokesperson told Politico: "We are listening carefully to the European Commission’s concerns and are confident we can address them."

The tech company issued the statement shortly after the European Union approached Microsoft with its concerns over the deal.

The European Union's antitrust watchdog previously set an April 11 deadline to approve the deal or not.

Meanwhile, Microsoft has claimed that gamers will benefit from the proposed acquisition of Activision.

The company previously moved to dismiss fears raised by the UK's Competition and Markets Authority (CMA), insisting that it will actually be good for consumers.

Microsoft said: "The suggestion that the incumbent market leader, with clear and enduring market power, could be foreclosed by the third largest provider as a result of losing access to one title is not credible.

"While Sony may not welcome increased competition, it has the ability to adapt and compete. Gamers will ultimately benefit from this increased competition and choice.

"Should any consumers decide to switch from a gaming platform that does not give them a choice as to how to pay for new games (PlayStation) to one that does (Xbox), then that is the sort of consumer switching behaviour that the CMA should consider welfare enhancing and indeed encourage. It is not something that the CMA should be trying to prevent."