Because the UK’s Competitors and Markets Authority (CMA) investigates Microsoft’s $68.7 billion acquisition of Activision Blizzard, Microsoft not too long ago revealed in its filings with the CMA that it plans to create a brand new “Xbox Cellular Platform” that may embody cell video games by Activision and King.
“The transaction will enhance Microsoft’s capacity to create a next-generation recreation retailer that operates throughout a spread of units, together with cell, on account of the addition of Activision Blizzard’s content material. Constructing on Activision Blizzard’s current communities of avid gamers, Xbox will search to scale the Xbox Retailer to cell, attracting avid gamers to a brand new Xbox Cellular Platform,” the corporate wrote in its filings.
Cellular video games are a few of the hottest downloads on app shops, so it’s no shock that Microsoft needs to get in on the motion. A graph on Microsoft’s Activision Blizzard acquisition website confirmed that the cell gaming market was value $85 billion in 2020.
Microsoft added in its filings with the CMA, “Cellular gaming revenues from the King division and titles resembling ‘Name of Obligation: Cellular,’ in addition to ancillary income, represented greater than half of Activision Blizzard’s revenues and within the first half of 2022.”
The cope with Activision Blizzard appears to be Microsoft’s reply for constructing out its cell gaming presence and competing with rivals Google and Apple.
Nonetheless, it’s not going to be simple to compete in opposition to the tech giants. A gaming examine by information.ai and IDC discovered that, within the first quarter of 2022, customers spent greater than $1.6 billion per week on cell video games on each the App Retailer and Google Play retailer.
“Shifting customers away from the Google Play Retailer and App Retailer on cell units will, nonetheless, require a serious shift in shopper conduct. Microsoft hopes that by providing well-known and common content material, avid gamers shall be extra inclined to attempt one thing new,” Microsoft added.
In August, Sony’s PlayStation introduced the acquisition of Savage Sport Studios. Xbox’s competitor stated that the cell recreation developer would be a part of its new PlayStation Studios Cellular Division to assist with its cell gaming efforts.
One other–admittedly smaller–competitor within the cell gaming area is streaming large Netflix. The corporate not too long ago introduced two new recreation studios in California and Finland. Nonetheless, it’s struggling to draw avid gamers. A latest report confirmed that fewer than 1% of its subscribers play Netflix cell video games.