Phil Spencer has already revealed plans to enter the mobile gaming market. Earlier this year, he expressed his intentions to launch a separate mobile store for Xbox, rivaling Google and Apple.
The Head of Xbox has also claimed that Microsoft intended to pursue Activision for its dominance in the mobile ecosystem. During a recent interview, Phil Spencer reiterated this stance, claiming Xbox needs mobile gaming to thrive.
Why it matters: Xbox has not been able to compete with Sony and Nintendo in the traditional gaming market recently, but Microsoft is looking ahead, expanding to other sources to grow the brand.
Speaking to Eurogamer, Phil Spencer elaborated on his ambitions for the mobile gaming market. When talking about the overall gaming landscape, he mentioned that Activision Blizzard thrives thanks to its business in mobile gaming.
Contrary to what most people believe, consoles and PCs are not the biggest source of revenue for Activision. Phil Spencer then said:
“We think that for Xbox to continue to thrive, we need to have some relevant place in the whole province.”
Therefore, the Head of Xbox hopes to encompass all areas of gaming, whether it be consoles, PC, or mobile.
Looking at the profitability of the mobile gaming segment, Phil Spencer’s ambitions make a lot of sense. Last month, it was revealed that mobile gaming accounted for nearly half of Activision Blizzard’s revenue last quarter.
On the other hand, mobile gaming companies like HoYoverse outpaced console gaming giants like PlayStation in terms of profits recently.
The interview also addressed the ongoing struggle to close the $68.7 billion Activision Blizzard merger over a year after the initial announcement, with Phil Spencer hopeful about the deal’s closure.
Microsoft has recently introduced revised measures like selling the Activision cloud gaming rights to Ubisoft in an attempt to convince regulators like the CMA before the October deadline.
Following the merger, Xbox will gain ownership of massive mobile properties.
This includes Candy Crush, Call of Duty Mobile, and more. The gaming giant is also likely to have invested in other mobile games through first-party studios in order to ensure a successful start to an ambitious journey on the platform.
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