Microsoft CEO Satya Nadella has spoken up to defend his company's blockbuster proposed acquisition of Activision Blizzard, saying it will help generate even more competition in the gaming space, not lessen it.

Speaking at the World Economic Forum in Switzerland, Nadella said Microsoft is trying to buy Activision Blizzard to compete better against bigger players in the market like Sony and Tencent.

"Being a No. 4 player trying to add some content and create more opportunity for more publishers, more gamers to be able to enjoy--I mean if you believe in competition, you should believe in this deal," he said, according to The Wall Street Journal. "I hope the competition authorities get focused more on competition and that would be a good day."