Microsoft is reportedly building an Xbox mobile app store that will allow users to directly download and install games on mobile devices. The company first hinted at the “next generation” of the Xbox mobile store in February of this year, announcing a set of “Open App Store principles” that will apply to the Microsoft Store for Windows, and the release of a marketplace for games. The principles were established as part of the regulatory approval process for Microsoft’s proposed $69 billion acquisition of Activision Blizzard (approximately Rs 5,67,600 crore), a deal currently under investigation by the UK Competition and Markets Authority (CMA). and EU competition authorities.
In your answer registration to the UK CMA asking Microsoft for the context of its acquisition of Activision Blizzard, the company said it wants to help expand its presence in mobile games as a motive for acquiring Call of Duty developer. Microsoft said in a statement that it hopes to build on Activision Blizzard’s “existing gamer communities” to allow them to compete with the Google Play Store and Apple App Store by offering “well known and popular content” that will push users to “try something new”. “. “Xbox will be committed to scaling the Xbox Store to mobile by bringing gamers to the new Xbox mobile platform,” Microsoft added in a response filing.
By submitting the bid, Microsoft has made it clear that it hopes to compete with Google and Apple in terms of market offering and mobile gaming platform. However, due to Apple’s policy of blocking third-party app stores on iOS, Microsoft’s vision of fighting Apple may seem a bit far-fetched, at least in the current environment.
Microsoft says the acquisition of Activision Blizzard will give the company a “significant presence in games,” a sector the company considers the most popular category of mobile downloads, generating the most revenue in terms of in-app purchases. app stores.
“Mobile gaming revenue from the King division and titles such as Call of Duty: Mobile, as well as spin-offs, accounted for more than half of Activision Blizzard’s revenue in the first half of 2022. [monthly active users],” Microsoft said in a report. “The deal will bring much-needed expertise in mobile game development, marketing and advertising,” the statement said.
The basis for filing a response is Microsoft’s argument that the acquisition is part of its advancement in mobile gaming, while the CMA’s investigation is primarily focused on fair competition in the console gaming segment. Microsoft’s dedicated web page on the Activision Blizzard acquisition deal, published graph depicting the gaming market at $165 billion (roughly Rs. 13,72,000 crore) in 2020, with consoles accounting for 20 percent at $33 billion (roughly Rs. 2,74,000 crore), PCs accounting for 24 percent at $40 . billion (approximately Rs 3.33,000 crore), while mobile games account for the largest share at 51% at $85 billion (approximately Rs 7,07,000 crore).
The deal is also facing challenges from the US FTC and EU antitrust authorities. However, EU competition authorities are expected to make a preliminary decision on the matter by November 8 to allow Microsoft’s proposed acquisition of Activision for $69 billion (roughly Rs. 5,67,600 crores), after which the European Commission is also expected to open a four-month investigation, in during which regulators’ concerns about Big Tech’s “bulldozer” acquisitions of this kind will be addressed.
The planned acquisition of the already culturally troubled company will, once completed, make it the largest in the gaming industry and help Microsoft better compete with leaders Tencent and Sony. Activision Blizzard has been blighted in the recent past by allegations of sexual harassment leveled against the company by employees and former employees.
Last July, the California Department of Fair Employment and Housing (DFEH) sued Activision Blizzard for promoting a culture of “persistent sexual harassment.” The game company also reached an $18 million (roughly Rs. 150 crore) settlement with the U.S. Equal Employment Opportunity Commission in September over additional allegations of sexual harassment.
Microsoft did not elaborate on how it plans to fix these cultural issues within the company once the acquisition is complete.