Microsoft has disclosed plans to enter the mobile market by creating its own Xbox mobile gaming store using Activision Blizzard's intellectual property (IP). This is expected to compete against Google Play and Apple App stores.
The Verge reported that the company's new proposal was laid out in documents submitted to the UK's Competition and Markets Authority (CMA).
Microsoft and Blizzard's Partnership
The CMA has requested background information from Microsoft about the $68.7 billion Activision Blizzard merger. Microsoft claims in its disclosures that expanding its mobile gaming offerings was a primary motivator for the acquisition. An Xbox mobile gaming platform and storefront are reportedly part of Microsoft's intentions for this business.
According to The Verge, the document stated, "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."
Competing Against Google and Apple
Microsoft's plan to expand the Xbox Store to mobile devices is anticipated to lure more gamers to its forthcoming Xbox Mobile Platform and shift users away from other tech giants, Google and Apple. Constructing a viable competitor to these companies would be an enormous job, so Microsoft would need to entice third-party developers if it intends to make headway in this market.
Reportedly, the software giant might use the popularity of games like Call of Duty: Mobile and Candy Crush Saga, released by Blizzard and King, respectively, to expand into a gaming marketplace competitive with Google Play and App Store.
However, because of iOS restrictions, Microsoft has little chance of competing with Apple's app store on iPhones. Nevertheless, that is apparently not stopping Microsoft from thinking about opening an Xbox app store for mobile devices.
Microsoft's recognition of a drive toward mobile gaming comes as the firm offers Xbox Cloud Gaming as an alternative for mobile gaming on a variety of developing handhelds. Microsoft was fast to enable Xbox Cloud Gaming on Valve's Steam Deck, which was followed by cooperation with Logitech and Razer for their cloud gaming-focused handhelds. This indicates that a push into mobile gaming may occur on numerous fronts in addition to mobile devices such as phones and tablets.
CMA on Examining Microsoft's Proposal
However, the CMA has scarcely examined the possibility of Microsoft entering the mobile gaming sector as part of its probe. Instead, the CMA is primarily concentrating on console gaming, which Microsoft claims is becoming an increasingly smaller portion of the total business.
The company estimates that the total value of the gaming market will be $165 billion in the year 2020, with consoles accounting for $33 billion or 20% of the market, personal computers accounting for $40 billion or 24%, and mobile gaming accounting for $85 billion or 51%.
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Written by Trisha Kae Andrada
