Over the past few years, Xbox has achieved remarkable success in the gaming industry, highlighted by its significant acquisitions like the $7.5 billion ZeniMax Media deal and the recently approved $68.7 billion takeover of Activision Blizzard.
Microsoft is reportedly planning to continue such efforts, expanding into the Japanese market to further elevate the company.
Why it matters: The Japanese gaming space is currently being dominated by PlayStation and Nintendo. Microsoft’s plans to expand in Japan are poised to bring healthy competition in the region.
At TGS I asked Phil Spencer if he has plans to have more studios in Japan or if they will just focus on relationships with Publishers
He told me that they want to expand their current studios in Japan but not only that, they would also like to expand in other ways too #Xbox pic.twitter.com/rUhmeW2FHD
— Genki✨ (@Genki_JPN) October 13, 2023
Phil Spencer’s ambitions in Japan reportedly go beyond just setting up studios. While that’s certainly part of their plan, Microsoft aims for a comprehensive expansion.
In recent discussions with Genki at the Tokyo Game Show, Phil Spencer shed light on its aims in Japan. He pointed to multiple ways of expansion into the market, possibly hinting at major Japanese acquisitions.
The objective is to enhance Xbox’s current studios’ abilities and build strong connections with important publishers. This strategy is set to solidify the gaming giant’s position and promote a cooperative environment.
In the past, Phil Spencer discussed the possibility of acquiring Nintendo, describing it as a potential “career moment” and a move that would be beneficial for both companies.
In 2022, a report revealed that Microsoft was actively talking with major Japanese publishers about potential acquisitions. Furthermore, the report also revealed that Phil Spencer was having regular meetings with the publishers for long-term partnerships.
However, studios like Capcom have recently denied any interest in being bought.
Japan is home to many talented developers, and such talent is the last piece of the puzzle for a well-rounded first-party Xbox team.
The gaming giant already owns Tango Gameworks, but it seems Phil Spencer may target a few more studios once the deal with Activision has been wrapped up.
Phil Spencer’s conversation from Tokyo Game Show points to Microsft’s long-term strategy to break into the Japanese market.
It is highly likely that Microsoft’s acquisition of Activision will not be its last as it continues to expand. However, it remains to be seen if the gaming giant can bring home another major Japanese studio like Tango Gameworks.
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