Microsoft is building an Xbox mobile gaming store to take on Apple and Google

[the-pi-guy]

Microsoft is building an Xbox mobile gaming store to take on Apple and Google. A new Xbox Mobile Platform is on the way for mobile devices, and the Activision Blizzard deal is key to this new platform and store. My full report here: https://t.co/K7ZSFJadim

— Tom Warren (@tomwarren) October 19, 2022

The software giant first hinted at a "next-generation" store it would "build for games" earlier this year but has now quietly revealed details of the plans in filings with the UK's Competition and Markets Authority (CMA).

The CMA is currently investigating the $68.7 billion acquisition and has asked Microsoft for context. In its filings, Microsoft says a big motivation for the purchase is to help build out its mobile gaming presence. Its plans for this space apparently include creating an Xbox mobile gaming platform and store. Here's what the company says in the filings:

The transaction will improve Microsoft's ability to create a next generation game store which operates across a range of devices, including mobile as a result of the addition of Activision Blizzard's content. Building on Activision Blizzard's existing communities of gamers, Xbox will seek to scale the Xbox Store to mobile, attracting gamers to a new Xbox Mobile Platform. Shifting consumers away from the Google Play Store and App Store on mobile devices will, however, require a major shift in consumer behavior. Microsoft hopes that by offering well-known and popular content, gamers will be more inclined to try something new.

The transaction gives Microsoft a meaningful presence in mobile gaming. Mobile gaming revenues from the King division and titles such as Call of Duty: Mobile, as well as ancillary revenue, represented more than half of Activision Blizzard's ... revenues in the first half of 2022. Mobile customers account for around three-quarters of its MAU. Microsoft currently has no meaningful presence in mobile gaming and the Transaction will bring much needed expertise in mobile game development, marketing and advertising. Activision Blizzard will be able to contribute its learnings from developing and publishing mobile games to Xbox gaming studios.

[Legend]

Why would Apple allow this?

[the-pi-guy]

Why would Apple allow this?

The big question here.

[kitler53]

Why would Apple allow this?

They won't 

[darkknightkryta]

Did Epic end up winning their case against Apple?

[Legend]

Did Epic end up winning their case against Apple?

Partially. They won a big one, allowing Epic to advertise their own store for microtransactions, but they lost everything else. The appeal is still in progress.

Epic Games v. Apple - Wikipedia