What Sony means by the statement is that, if the merger went through, Microsoft would stop releasing Call of Duty games on PlayStation platforms, essentially turning Sony into another Nintendo when it comes to competing in the market for 18-rated shooters.
This would indicate that Microsoft doesn’t really see Nintendo platforms as competition to Xbox the same way it sees PlayStation as competition.
Sony also points out that, interestingly enough, Microsoft doesn’t track Nintendo as well as it tracks PlayStation in its internal documents when it comes to competitive assessment.
“Ignoring these facts, Microsoft argues that Nintendo has been successful without access to Call of Duty,” the statement continues.