IT House News on October 19th, according to reports, Microsoft will create an Xbox mobile game store to provide games on mobile devices, challenging Apple and Google.
In a filing with the UK’s Competition and Markets Authority (CMA), Microsoft revealed details of the plan. The CMA is currently investigating Microsoft’s $68.7 billion acquisition of Activision Blizzard and asked about Microsoft’s background.
Microsoft said in its filing that one of the motivations for the acquisition was to help expand its mobile gaming business, and here’s the company’s statement in the filing:
The deal will improve Microsoft’s ability to create a next-generation gaming store that will operate on a range of devices, including mobile, with the addition of Activision Blizzard content. Building on Activision Blizzard’s existing player community, Xbox will seek to expand the Xbox Store to mobile devices, attracting players to the new Xbox mobile platform.
However, shifting consumers away from the Google Play Store and Apple App Store on mobile devices will require a major shift in consumer behavior, and Microsoft hopes to make gamers more inclined to try new things by offering well-known and popular content.
IT Home has learned that Activision Blizzard has now launched very popular mobile games such as “Call of Duty Mobile” and “Candy Crush Saga” on mobile platforms, and Microsoft can use these games to help build a game store, with Google Play and Google Play. App Store competition. In addition, Microsoft is heavily promoting its Xbox cloud gaming, bringing the service to multiple handheld devices, even Steam Deck.
Microsoft also said that the acquisition of Activision Blizzard also took a fancy to the powerful monetization capabilities of mobile games, stating:
The deal gives Microsoft a meaningful presence in mobile gaming. In the first half of 2022, mobile game revenue from King’s division and games such as Call of Duty Mobile and ancillary revenue accounted for more than half of Activision Blizzard’s revenue. Mobile customers account for about three-quarters of its MAU.
Microsoft currently has no substantial business in mobile gaming, and the deal will bring much-needed expertise in mobile game development, marketing and advertising. Activision Blizzard will be able to provide Xbox game studios with experience developing and publishing mobile games.
However, as part of the investigation, the CMA did little to discuss Microsoft’s potential entry into the mobile gaming market, focusing primarily on console gaming. Microsoft believes that console games are taking a smaller and smaller share of the overall market. In a chart released by Microsoft, Microsoft said the overall gaming market will be worth $165 billion in 2020, with the console market worth $33 billion (20%), the PC market worth $40 billion (24%), and the mobile gaming market worth $85 billion (51%).
Additionally, to attract third-party game developers, Microsoft has committed to a set of principles that allow developers to freely run their own app store on its Xbox mobile platform and provide its own payment system to handle in-app purchases, i.e. not enforce Take a cut, which is impossible on Apple and Google’s platforms.
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- 2022-10-19Microsoft says it will build an Xbox mobile game store, challenge Apple and Google with zero commission
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- 2022-09-22Microsoft CEO: very confident in the approval of the acquisition of Activision Blizzard
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