The CMA feels Microsoft's decision to sell cloud streaming rights for Activision Blizzard content to Ubisoft is an important change that "substantially address" many of its concerns.
A successor to the Nintendo Switch was the subject of conversation between Bobby Kotick and Nintendo boss Shuntaro Furukawa.
The publisher's "complete slate" of games (and future titles) will be playable on Ubisoft+ via the cloud after it's acquisition by Microsoft.
Microsoft appreciates the Commission's "thoughtful consideration" and welcomes the decision to "clear the deal unconditionally."
The appeal against the authority's denial of the deal was set for July 28th but was delayed by two months for further negotiation.
"I think it's good news that the transaction can go through because it really shows the power of IPs, and where the industry is going," Ubisoft CEO Yves Guillemot says.
The FTC has responded to Microsoft's motion to withdraw from recent proceedings with no objections.
August 2nd is the trial date, but both companies say, "Withdrawal from adjudication is not only mandatory but in the public interest."
"We're optimistic about getting this done, and excited about bringing more games to more players everywhere," says Xbox boss Phil Spencer.
The UK's Competition Appeal Tribunal was originally set to begin proceedings around Microsoft's appeal later this month.
In recently submitted court documents, Microsoft stated that Nintendo has "a contractual right to obtain Activision content post-merger, including Call of Duty."
Other Activision franchises like Overwatch, Diablo, Crash Bandicoot, and more aren't guaranteed to release for PlayStation in the future.
"We look forward to a future where players globally have more choice to play their favorite games," says Xbox boss Phil Spencer.
Earlier this year, Microsoft signed a "binding" 10-year agreement with Nintendo to bring Call of Duty games to its platforms.
The US Federal Trade Commission's appeal against the verdict by Judge Corley in its trial against Microsoft has been denied by the Ninth Circuit Court of Appeals.
However, the CMA says it "aims to discharge its duty as soon as possible and in advance of this date."
The FTC was recently denied an injunction against the proposed acquisition, while Microsoft has also begun negotiating with the CMA.
The FTC hopes to use its appeal to try and file an injunction against Microsoft's acquisition of Activision Blizzard until a trial slated for August.
The CMA also states that if Microsoft chooses to suggest a restructured deal during negotiations, it could still "lead to a new merger investigation."
The FTC has until Friday to appeal against the recent ruling, which denied an injunction against Microsoft's proposed acquisition of Activision Blizzard.
