It may not be “move over Google and Apple” just yet, but Microsoft is reportedly making headwinds in creating a new mobile Xbox store. The store, when completed, would unquestionably rival the two pillars of the mobile gaming industry.
What would this mean?
A mobile Xbox store would allow Microsoft the ability to offer games direct to mobile devices, a feat currently only accomplished by Apple and Google. How do we know? According to reports, Microsoft filed their outlines with the Competition and Markets Authority (CMA) in the UK.
Microsoft is currently purchasing (pending another CMA approval) Activision Blizzard for almost $70 billion. And that acquisition is the rug that ties the room together, at least for Microsoft’s hopes to take mobile gaming market share away from the big dogs.
Once the purchase of Activision Blizzard goes through, Microsoft inherently positions itself to feed a variety of devices with mobile games. Microsoft will leverage Blizzard’s current array of communities and expand from there.
Both Apple and Google’s mobile gaming stores are by far and wide dominant at every aspect. Microsoft will have it’s work cut out for it, but if anyone can rival them, it’s a brand as big as Microsoft. Additionally, Microsoft already has a major gaming presence.
Moreover, Call of Duty is one the gaming markets biggest games. If Microsoft leverages it by offering it in an Xbox mobile store, it would likely be a huge hit.
Right now, Microsoft’s Xbox Cloud Gaming is used by handheld gaming devices such as Steam Deck.
The deal could be sweeter for mobile game developers as its rumored that Microsoft will allow them their own stores with their chosen payment processing setups. That could give Microsoft a competitive edge given Apple doesn’t allow this.
For Microsoft, having a dominant existence in the mobile gaming world is massive shift for the company. Mobile gaming consumers are some of the biggest and as it stands, Microsoft gets little of that pie. Offering mobile games directly via a store will dramatically change their revenue charts. The entire gaming market was estimated at $165 billion in 2020, with mobile gaming representing $85 billion of that.
That means mobile gaming represents a shade over half of the gaming revenue pie.
In the end, competition is a great thing and tends to help evolve industries as well as level out prices. The gaming industry isn’t cheap by any stretch of the imagination.