Followiung yesterday's OFT's referral of the £96.5m buyout to the Competition Commission, Future has withdrawn its offer for Highbury House Communications.
The OFT believed the deal could have been anti-competitive, concentrating too many computer games mags with one pubolisher.
Future owns Edge, PC Gamer, PC Zone, the Official PlayStation2 Magazine, and Xbox Game. Highbury owns Powerstation, Play and Xpert.
Future chief executive Greg Ingham said: "Future believes that it would not be in the interests of shareholders to pursue further a possible acquisition of the issued ordinary share capital of Highbury."