As Microsoft was laying off hundreds of employees in their Xbox division this week, which I suspect were people employed on hardware development, it’s emerged that the big software Company is developing a next generation retail store for mobile gamers.
Plans discovered in filings with the UK’s Competition and Markets Authority (CMA) who are investigating Microsoft’s US$68.7 billion acquisition of Activision Blizzard reveal that Microsoft is building an Xbox mobile store to directly offer games on mobile devices access to thousands of games. The Company already has a PC gaming store that brands such as Samsung are now delivering for consumers who own a Samsung TV or display monitor.
Microsoft claim that a big motivation for the purchase of Activision Blizzard is to help build out its mobile gaming presence on mobile phones and tablets.
It appears, that Microsoft wants to operate across a range of devices, including mobile which is why they want to sale the Xbox Store to mobile, attracting gamers to a new Xbox Mobile Platform.
This will take Microsoft into a head on battle with the Google Play Store and Apple’s App Store.
The Verge claims that Call of Duty: Mobile and Candy Crush Saga are two hugely popular mobile games published by Activision and King, respectively, and Microsoft could leverage these titles to help build out a game store to rival Google Play and the App Store.
The problem is that given Apple’s policies of blocking third-party app stores on iOS, it’s difficult to imagine Microsoft competing on iPhones anytime soon.
The Verge went on to claim that Microsoft’s acknowledgment of a mobile gaming push comes as the company increasingly positions Xbox Cloud Gaming as an option for mobile gaming on emerging handhelds.
Microsoft was quick to support Xbox Cloud Gaming on Valve’s Steam Deck, followed by a partnership with Logitech and Razer for their cloud gaming-focused handhelds.
That means a push into mobile gaming could happen on multiple fronts — not just on phones and tablets.
If successful, the move could rake in billions for Microsoft who are already raking in billions selling cloud-based services such as Office 365.
During investigations of Microsoft’s Activision Blizzard acquisition, it’s been claimed that the entire gaming market as worth US$165 billion in 2020, with consoles making up $33 billion (20 percent), PCs at $40 billion (24 percent), and mobile gaming at $85 billion (51 percent).
regulators such as the ACCC in Australia now have the unenviable task of untangling these arguments between Sony and Microsoft and figuring out exactly how this deal could harm consumers or competition.
Microsoft still hopes to close this deal out by spring 2023.