Even Microsoft agrees they’d prefer to do it by producing competitive games, which isn’t in question here though. The dispute is whether this gives Microsoft an anti-competitive monopoly.

Even though mergers of this size aren’t good for gamers, it doesn’t even put Microsoft anywhere near equal footing with Sony, never mind giving Microsoft a monopoly.

but this should be brought about by Microsoft producing competitive games/services rather than purchasing more of the industry.

Why, because you say so?