Microsoft is now developing an Xbox smartphone gaming store for Android and iOS platforms to compete with its big rivals, Google Play Store and Apple’s App Store. According to The Verge information, the company has been making a deal with the UK’s Competition and Markets Authority (CMA) into Microsoft’s acquisition of Activision Blizzard.
CMA will be responsible for business competition and reducing anti-competitive activities. The regulatory agency is looking into how Microsoft’s acquisition of Activision Blizzard will affect the market and if this deal reduces competition by any means. Microsoft will acquire Activision Blizzard to increase the competition rather than kill it.
The Xbox Store will be an alternative for gamers, and according to Microsoft, shifting consumers from those two platforms to its game store will require a major shift in consumer behavior. Microsoft believes that acquiring Activision, who made many popular games is an important step.
Microsoft posted revenue from different platforms, the entire gaming industry at $165 billion in 2020, and mobile gaming makes up 51% ($85 billion) of the total market size, with PC and console gaming at second and third positions with $40 billion and $33 billion market share, respectively. Since mobile gaming has a high popularity, Microsoft wants to take a chance.
Microsoft is also pushing the Xbox Cloud Gaming service, and the company has partnered with Steam Deck, Logitech, and Razer for their cloud gaming-focused handheld devices. However, Microsoft will have a tough time offering it on App Store due to Apple’s restrictions.