Microsoft is preparing to take on Apple and Google with a new Xbox mobile store. The software giant first hinted at this earlier this year, but now they’ve revealed details of their plans through filings made with the UK’s Competition & Markets Authority (CMA).
It’s no secret that the CMA is currently investigating the Activision Blizzard acquisition, and Microsoft has recently started proving that the investment is more than beneficial for everyone. The enthusiasm for a more robust mobile gaming presence is one of the highlights. As noted by The Verge, this is what the company pointed out in the fillings:
The transaction will improve Microsoft’s ability to create a next generation game store which operates across a range of devices, including mobile as a result of the addition of Activision Blizzard’s content. Building on Activision Blizzard’s existing communities of gamers, Xbox will seek to scale the Xbox Store to mobile, attracting gamers to a new Xbox Mobile Platform. Shifting consumers away from the Google Play Store and App Store on mobile devices will, however, require a major shift in consumer behavior. Microsoft hopes that by offering well-known and popular content, gamers will be more inclined to try something new.
The gaming industry is one of the most popular download options on mobile devices, with Apple taking 30% of all revenue. Microsoft sees an opportunity here; they describe how games drive in-app purchases and point out that this content can be tailored to meet user preferences better than other types. This is how Microsoft describes the opportunity:
The transaction gives Microsoft a meaningful presence in mobile gaming. Mobile gaming revenues from the King division and titles such as Call of Duty: Mobile, as well as ancillary revenue, represented more than half of Activision Blizzard’s … revenues in the first half of 2022. Mobile customers account for around three-quarters of its MAU. Microsoft currently has no meaningful 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 contribute its learnings from developing and publishing mobile games to Xbox gaming studios.
In a world where the mobile phone is increasingly becoming a vital gaming device, it makes sense that Microsoft would want to get in on this trend. They have already supported Xbox Cloud Gaming with partnerships for Logitech and Razer’s devices which could mean they’re looking ahead rather than behind at what’s subsequent within their industry.
