As reported by the very serious newspaper The Verge, Microsoft is building a mobile gaming platform to compete directly with large companies like Apple or Google, which have a dominant place in the field. Earlier this year, Microsoft explained that it wanted to create a next generation online platform of which we can discover some details today thanks to the investigations of the Competition and Markets Authority (CMA) of the United Kingdom about the acquisition of Activision Blizzard.
The giant Microsoft wants to tackle mobile games
The CMA is currently investigating the acquisition of Activision Blizzard for 68.7 billion dollars and in the various documents of the investigation we can discover that Microsoft indicates to have a great motivation to strengthen its presence on mobile. The objective would therefore be the creation of a platform and an Xbox mobile game store.
The document states:
The deal will enhance Microsoft’s ability to create a next-generation game store that works across a range of devices, including mobile with the addition of Activision Blizzard content. Building on Activision Blizzard’s existing gaming communities, Xbox will look to extend the Xbox Store to mobile, bringing gamers to a new Xbox Mobile platform. Diverting consumers from the Google Play Store and App Store on mobile devices, however, will require fundamental changes in consumer behavior. Microsoft hopes that by offering known and popular content, gamers will be more inclined to try something new.
Among the two very popular games that the takeover of Activision Blizzard will make it possible to exploit, we note above all Call of Duty: Mobile and Candy Crush Saga. Behemoths that will obviously allow Microsoft to carve out a nice slice of the pie.
The transaction gives Microsoft a significant presence in mobile gaming. Revenue from the King Division’s mobile games and titles such as Call of Duty: Mobile, along with ancillary revenue, accounted for more than half of Activision Blizzard’s revenue in the first half of 2022. Mobile customers account for approximately three quarters of his MAU. Microsoft currently has no significant presence in mobile gaming and the transaction will bring much-needed expertise in mobile game development, marketing and advertising. Activision Blizzard will be able to bring its knowledge of mobile game development and publishing to Xbox game studios.
Microsoft is doing everything right now to break into the mobile front. Proof of this is support for Xbox Cloud Gaming on the Steam Deck from Valve, as well as the partnership with Logitech and Razer on mobile consoles for Streaming.
Anyway it will be very difficult to fight against Apple or at least succeed in taking market share in the sense that the entire Apple / iPhone system is in a closed environment and operates on a system of communicating vessels.