In a recent interview on Xbox’s official podcast, Phil Spencer, the head of Xbox, provided some important insights into Microsoft’s motivations for a colossal deal between Activision and Microsoft and its future impact on the gaming industry.
Emphasizing the growing significance of the mobile gaming market, Spencer highlighted the necessity for Microsoft to establish a formidable presence in this domain to remain relevant on a global scale.
The Power of Mobile Gaming
Acknowledging the large user base and the huge power of the mobile platform, Spencer underlined the essentiality of integrating mobile gaming into Microsoft’s gaming ecosystem.
Spencer stated that,
If you’re going to continue to be relevant in gaming at a global scale, you’re going to have to find a way to be relevant on the largest platform, which is mobile.
With an estimated 3 billion people engaging in gaming activities worldwide, the harnessing potential of this market cannot be overlooked.
Also Read: The Future of Call of Duty under Microsoft’s Umbrella: Xbox Head Phil Spencer’s Vision For COD
Diversification as a Strategic Asset
While the acquisition places Microsoft in control of renowned franchises like Candy Crush, Diablo Immortal, and Call of Duty, Spencer was quick to dispel the notion that all Microsoft franchises would be transformed into mobile games.
Stressing the importance of diversity in business models, he emphasized that Microsoft’s strength lies in its ability to operate across various gaming sectors.
Emphasizing the strategic advantage derived from their multifaceted approach, Spencer clarified that,
It doesn’t mean I want to turn all of our franchises into mobile franchises; it doesn’t mean everything is going to go free-to-play.
The Mobile Frontier and Beyond
In line with Microsoft’s existing gaming approach, which includes direct game sales, the popular Game Pass subscription program, and the operation of free-to-play games, the acquisition of ABK drives Microsoft further into the mobile gaming sphere, unlocking the vast potential and opportunities that reside within.
Spencer further reiterated the essential nature of establishing a strong foothold in the mobile space, asserting,
We’ve got to be relevant on mobile. There is no way to plot the future without being on the platform that most of the planet plays on.
Read More: Xbox’s Expansion Strategy: Entering into the Mobile Gaming Market, Xbox Mobile Store Coming in 2024
Disclosing the Decision-Making Process
Offering insights into the acquisition process, Spencer unveiled how he, along with Microsoft CFO Amy Hood, identified ABK as a key player in the mobile gaming market.
A thorough evaluation of the industry’s landscape and strategic players led to the recognition of ABK’s significance, ultimately culminating in the record-breaking $68.7 billion deal, positioning Microsoft at the forefront of the ever-evolving gaming industry.
In conclusion…..
Microsoft’s entry into the mobile gaming space after the acquisition of ABK marks a strategic move aimed at securing its position in the competitive gaming industry.
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