"Limited residual concerns", but the UK authority felt the "restructured deal substantially addressed" its initial concerns.
Changes to the deal to appease the CMA won't require another round of approvals from the European Commission, sources say.
The last Guitar Hero game released was Guitar Hero Live, which was out on PS4 and Xbox One back in 2015.
Activision Blizzard has stated that it will start working with Microsoft to bring games to the subscription service next year.
The company is reportedly eyeing October 13 as the date to officially announce the completion of its $69 billion acquisition.
The FTC "continues to believe this deal is a threat to competition," though Microsoft and Activision are confident in closing by October 18th.
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.
