In an effort to convince regulators, Microsoft said that the acquisition of Activision Blizzard would help create a mobile game store.
In an effort to convince regulators, Microsoft says that its acquisition of Activision Blizzard will help them create a new mobile game store.
Microsoft is building a mobile game store that will compete with both the Apple App Store and the Google Play Store. Currently, Microsoft is barely present in the mobile gaming market, but they plan to change that after acquiring Activision Blizzard. The massive $68.7 billion deal is still unfinished and is currently being investigated by regulators in several countries, and Microsoft is now using this mobile presence angle as a How to convince the UK Competition and Markets Authority (CMA).
Microsoft’s acquisition of Activision Blizzard is slated to run until 2023, but when that happens, Xbox owners will have immediate access to Activision Blizzard’s extensive portfolio of games, including famous franchises like Call of Duty, Diablo and Warcraft. But what is often overlooked is the fact that Activision Blizzard also owns King, which holds a large share of the market share in mobile games, thanks to popular titles like Candy Crush. For Microsoft, this will give them a huge head start in building their own mobile gaming ecosystem.
In a filing with the CMA, Microsoft details its plans to create a new mobile store based on games by Activision and King. Microsoft says that the acquisition will allow it to “expand the Xbox Store to mobile devices” and to “attract gamers to a new Xbox Mobile Store”. The company also acknowledges that moving consumers away from the App Store and Google Play Store on mobile devices requires a major shift in consumer behavior, which is why it hopes that “by By providing popular and popular content, gamers will be more inclined to try something new.”
While many say that Call of Duty is the biggest reward Microsoft can get from the deal, Xbox owners are clearly looking beyond that, especially in terms of revenue. In the same document, Microsoft also highlights that revenue from King games and other mobile titles like Call of Duty: Mobile actually “represents more than half of Activision Blizzard’s revenue for the first half of 2022. ”, not to mention mobile customers make up about 3/4 of Activision Blizzard’s monthly active users. With this acquisition, Microsoft believes that Activision Blizzard will be able to “contribute its experience from developing and publishing mobile games to Xbox gaming studios”.
It is currently unclear how Microsoft plans to implement this mobile vision when the deal is approved next year. While the idea of challenging the App Store and Google Play Store sounds hard enough, Microsoft still needs to consider other potential obstacles, such as Apple’s policy of blocking third-party app stores on iOS.