Phil Spencer: Mobile Gaming Is Real Strategic Angle For Activision Acquisition

Xbox Targeting Mobile Segment Next!

Microsoft continues discussing the gaming giant’s goals for Activision Blizzard as the deal progresses. The gaming giant has recently elaborated on its stance on exclusivity and more. 

While speaking on a podcast, Phil Spencer recently talked about Microsoft’s aspirations for the mobile industry. According to the Xbox Game Studios head, mobile gaming was the real strategic angle for the merger. 

He said:

“The real strategic angle behind this was we need to get relevant on mobile. And it turns out that Activision Blizzard King is the largest mobile publisher outside China.”

YouTube video

Much of the dispute around the acquisition has revolved around Call of Duty. Companies like PlayStation and Nvidia had been concerned about a potential monopoly due to the influence and market power of the Call of Duty franchise. 

However, the gaming giant has already offered deals to keep the franchise on other platforms. An agreement has been signed with Nintendo, and Microsoft has also convinced Nvidia. 

While Call of Duty is undoubtedly important for Xbox, mobile gaming is just as appealing for a company like Microsoft. Mobile games are notorious for generating record profits each year, along with the large player bases due to the platform’s accessibility. 

Activision Blizzard King owns titles like Candy Crush and Diablo Immortal. The latter was released in 2022 and generated over $300 Million in less than six months. Additionally, Call of Duty Mobile is also doing well.

If the acquisition succeeds, Microsoft will likely continue to invest in the platform through the newfound relevance. Xbox Cloud Gaming is already available on the mobile platform and will likely continue to grow simultaneously. 

Recent reports have claimed that Microsoft is likely to convince regulators in the EU after the current wave of agreements. However, regulators like the FTC have not shown much hope for the deal.

A judge also granted Microsoft permission to examine Sony’s exclusivity deals since 2019. Sony’s documents might help Microsoft make a stronger case for the merger, pushing them one step closer to being a massive player in the mobile gaming space. 

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