Phil Spencer must be in high spirits right now after the insane $68.7 billion deal that brought Activision Blizzard under the Xbox banner. He's still wary about big competitors, though, but the ones he's worried about are likely not who you think.
The head of Microsoft Gaming and Xbox is more concerned about Google, Facebook, and Amazon, according to TechRadar.
He cites that these three Big Tech giants are more in place to topple Microsoft's empire while also saying that their long-time competition in Sony, Nintendo, and Valve are "unlikely to disrupt the industry."
In a statement, Spencer said that Nintendo isn't poised to do anything that disrupts the gaming market in the long term due to their niche business. The same thing goes for Sony and Valve, both of whom he says "he trusts."
But when talking about Google, Amazon, and Facebook, the Xbox head honcho seemed a bit more pensive.
He cites the capabilities of these three companies in the tech space, with Google controlling search, Amazon controlling shopping, and Facebook being the undisputed leader in social. For Spencer, it is all about how many people these three giants can reach.
Facebook, Google, and Amazon aren't as big in the gaming industry as Xbox, Sony, and Nintendo are. However, they have notably been trying to get into the games industry at their own pace.
Google was likely the more obvious of the three when they tried to go at it with the game streaming service Stadia. However, the service was eventually shut down last year, with Google now licensing the service's technology to other companies.
As for Amazon and Facebook, the former already has a foot in the door courtesy of their MMORPG "New World." Facebook's foot into gaming still largely remains in the streaming space, but there is the confidence that they could soon jump to other areas of the industry.
Do Phil Spencer's concerns warrant?
As previously mentioned, Google, Facebook, and Amazon aren't gaming household names similar to Sony, Microsoft, or Nintendo. But they are already making their moves to try to get into an industry that has now exceeded $300 billion.
According to The Street, there are rumors that Amazon, alongside Apple and Disney, is looking to buy EA and Take-Two Interactive (aka the parent company of "GTA" maker Rockstar Games). A buyout of Electronic Arts could cost up to $60 billion, while Take-Two could be priced at a relatively modest $30 billion in a theoretical sale.
As for Facebook, their next big venture, for now, is the upcoming GamesBeat & Facebook Gaming Summit, where keynote speakers look to discuss the future of Meta as a whole in the gaming industry-both short and long-term.
Lastly, as you should know, Google's idea for Stadia has already fizzled out, with the search engine giant going back to the drawing board.
For now, Xbox and Phil Spencer are looking ahead to a big 2022 (partly fueled by their recent acquisition of Activision Blizzard). As of this moment, it would seem like no one, not even close rival PlayStation can touch Xbox.
This article is owned by Tech Times
Written by RJ Pierce
