Microsoft recently disclosed in its filings with the U.K.’s Competition and Markets Authority (CMA) that it plans to develop a new “Xbox Mobile Platform” that will contain mobile games by Activision and King. The CMA is currently looking into Microsoft’s $68.7 billion acquisition of Activision Blizzard.
The acquisition of Activision Blizzard’s content as a result of the transaction will enhance Microsoft’s capacity to develop a next-gen gaming shop that works across a variety of devices, including smartphones. Building on the existing gaming communities owned by Activision Blizzard, Xbox plans to scale the Xbox Store to portable devices in order to draw users to a new Xbox Mobile Platform.
It is not surprising that Microsoft wants to join in on the fun given that mobile games are among the most downloaded items from app stores. According to a graph on the Activision Blizzard website that Microsoft acquired, the mobile gaming sector was worth $85 billion by 2020.
Arrangement with Activision Microsoft’s strategy to expand its portable gaming presence and compete with rivals Google and Apple appears to be Blizzard. However, competing with big tech companies won’t be simple. Customers spend over $1.6 billion each week on mobile games on the App Store and Google Play store, according to a gaming study by data.ai and IDC.
However, a significant change in consumer behavior is necessary to get users of mobile devices away from the App Store and Google Play Store. Microsoft stated that it hoped to provide well-known and well-liked material that will encourage gamers to explore new things.
The purchase of Savage Game Studios was announced by Sony’s PlayStation in August. The rival to Xbox claimed that the mobile game developer would work with its latest PlayStation Studios Mobile Division to advance mobile gaming.
Netflix is a major streaming service and another, albeit smaller, rival in the mobile gaming market. Two latest game studios in Finland and California have just been launched by the firm. However, it has trouble drawing in players. Less than 1% of Netflix’s members, according to a recent study, play mobile games.