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Microsoft did nothing wrong. I'm pretty sure that Activision nor Sony own the Word "Destiny". They are advertising a fragrance named Destiny. Whatever conclusions people draw is on them. And in the end, Microsoft accomplished exactly what they intended. The internet is buzzing about Destiny on Xbox One. It was extremely well played by them.

Also, I'm pretty sure Microsoft has a huge legal team. I would assume this was run by them before it was done.