While the Activision Blizzard acquisition is still under investigation, Microsoft is looking to build an Xbox mobile gaming store to bring Activision and King games to its store.
Related: Microsoft lays off almost a thousand employees
UK Competition and Markets Authority regulators recently asked for Microsoft’s response for phase 2 of the investigation. Microsoft’s submission revealed the plans to open an Xbox mobile gaming store which was planned for earlier this year but the investigations put a hold on the plan.
In the submission Microsoft said; “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 behaviour.”
The industry giant continued, “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 and 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.”
Microsoft also said the acquisition of Activision Blizzard would support its investments in Game Pass. Last month Phil Spencer, head of the Xbox gaming division, confirmed that Call of Duty, Overwatch, and Diablo would come to Game Pass. Recently at the 2022 Meta Connect conference, Meta announced Xbox Cloud Gaming was coming to Meta Quest soon.
UK regulators will have the final verdict on March 2023 as Brazillian regulators have already approved the deal and decided that Sony and other industry giants could compete with Microsoft.
