Yes exactly. It's obvious when you compare the pre-merger relationship between Microsoft and ABK to, say, the relationship between Microsoft and Sony. The latter is very competitive, whereas the former is more symbiotic
Mergers like this are always bad for the consumer
This is not true. Horizontal mergers are always bad for the consumer. Vertical mergers, like this one, can either be good or bad or neither. In many other cases they have been a net benefit to consumers and actually increased competition
No one is expecting Microsoft to act altruistically. We are expecting them to rake in more cash, especially from King, and invest that cash in games, gamepass, and actual competition to Sony and Nintendo. We are expecting them to make smart business decisions and, SHOCKER, there are smart business decisions available to them that are also beneficial to consumers
No company is your friend. But a smart company finds ways to make money off you while still leaving you happy and content after