It means the FTC knows they got no teeth

Yeah. Wtf. Am I reading this right?

The deal can close, Microsoft can own ABK...But we're still taking you to court? Why would you do that? Lmao.

What a fucking waste of time.

I would imagine they would still be able to get any of the relatively cheap publishers, even those publicly traded. Activision-Blizzard is $69b and adds a pretty significant amount to Xbox's software marketshare, there are quite a few publishers that are worth less than $10b and would add a much smaller percentage to Xbox's software marketshare which Xbox should be able to get past the regulators; Sega, Koei Tecmo, Square Enix, Capcom, Konami, Warner Bros. Interactive, even Ubisoft would have a good chance I'd say. EA or Take-Two/2K they would struggle with, just like ABK, Nintendo and Sony as well of course. 

Plus any independent AAA studios could be targets, Crytek, CD Projekt, Avalanche, IOI, etc.

Wait, I'm confused. Why take it to court if you're not seeking to block the deal?

Ok, I think I get what they are saying. They are suing to break up the merger if it goes through, but they aren't actually asking for it to be blocked in the meantime. Means that the deal could be completed and closed if the other regulators approve it, but if the FTC wins in court after it has closed, Xbox would be forced to divest ABK and make it it's own independent entity again. 

Everything still seems to be working according to plan. FTC looks like they care about big tech. MS has a clear way to show this deal is legit and does no harm to the industry which then allows them to make stronger case in other countries. My estimate that this deal closes without to much fuss. I am giving it an above 90% chance.

Make ABK its own entity again how exactly?