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[Thick Thighs Save Lives]

(Bloomberg) -- Microsoft Corp. is talking to partners to help launch a mobile gaming store that will take on Apple Inc. and Google’s dominant position in the business, according to Phil Spencer, who leads the company’s Xbox video-game division.

“It’s an important part of our strategy and something we are actively working on today not only alone, but talking to other partners who’d also like to see more choice for how they can monetize on the phone,’’ Spencer said in an interview in Sao Paulo during the CCXP comics and entertainment convention.

The executive declined to give a specific date for a launch of the online store, which earlier reports suggested could be next year. “I don’t think this is multiple years away, I think this is sooner than that,’’ he said.

Microsoft earlier this year expanded its Game Pass subscription service for players on personal computers to 11 new Latin American countries, leading to a 7% increase in customers. Peru and Costa Rica are the standouts in terms of customer interest, accounting for almost half of new signups, Spencer said. Globally Brazil is the second-biggest market for the PC Game Pass. “In many ways Brazil leads a lot of the trends that we see globally,” Spencer said.

But mobile is also really important in Brazil, and there Microsoft lags significantly.

The company recently completed its $69 billion acquisition of gaming giant Activision Blizzard Inc., which Spencer has said was motivated in part by Activision’s strong presence in mobile gaming with hits like Candy Crush and Call of Duty Mobile. He argued the deal was necessary to boost the company’s relatively small footprint in the $90 billion mobile-gaming market. The delay in closing that deal, which was completed in October, nearly two years after it was announced, kept Microsoft from being able to move to aggressively forward with its app-store plans.The business has changed since Microsoft first announced the merger. After years of strong growth, mobile gaming has experienced a market downturn. In 2022, players spent 5% less than they did the prior year, according to research from Data.ai. The trend is expected to continue this year.

Microsoft’s mobile store would also enter a challenging regulatory climate around smartphone-based digital marketplaces. Fortnite-maker Epic Games Inc. has sued both Apple and Alphabet Inc.’s Google over their iOS and Android store practices, alleging they are unnecessarily restrictive and unfair. Apple doesn’t allow competing stores on its iPhone and iPad platforms, and collects a 30% cut of sales for most purchases. Game makers have taken issue with the fees.

Epic lost its battle with Apple but in September asked the US Supreme Court to weigh in. Apple is also petitioning that court to reverse an order that would force the company to let developers steer customers to other payment methods. Epic is still in court fighting its case against Google, which does allow third-party app stores on its devices.The European Union’s Digital Markets Act, which is just beginning to take effect, could force Apple to open up its app store ecosystem. Apple is challenging the regulation.

Microsoft may be able to use long-standing resentment against the market leaders to martial support for its store offering. Xbox’s cloud gaming technology already lets users stream blockbuster games to mobile phones.

“We’ve talked about choice, and today on your mobile phones, you don’t have choice,’’ Spencer said. “To make sure that Xbox is not only relevant today but for the next 10, 20 years, we’re going to have to be strong across many screens.”

Gamers Spencer met in Brazil at a Microsoft fan event also asked him to do more with Blizzard’s World of Warcraft game for local customers and he said he plans to take the feedback back to the newly acquired team.

Xbox Talking to Partners for Mobile Store, CEO Spencer Says - BNN Bloomberg

Challenge to Apple, Google app stores could come soon.

www.bnnbloomberg.ca

 

[R6Rider]

That picture of Phil lmao

 

[Tams]

Spency P looking like he needs to hit the gym.

 

[mansoor1980]

That picture of Phil lmao

 

[twilo99]

Can't do a thing until Apple gives them the right to do so..

 

[graywolf323]

of course, that’s part of why they bought ABK and why they’ve supported Epic’s lawsuits to try to force Apple to allow sideloading

they want to be able to have their stuff on others’ platforms without having to pay a fee

 

[Krieger]

“To make sure that Xbox is not only relevant today but for the next 10, 20 years, we’re going to have to be strong across many screens.”

And here I thought the parity Series S/X bullshit was bad. Get ready for the future where every new Xbox game also needs to be playable on fucking smartphones!

 

[semiconscious]

It’s an important part of our strategy...

right. & which 'strategy' is that now? this week's, or next week's?...

 

[Gambit2483]

Mobile, where all the dummy dollars are. Seems legit.

 

[TheBomb]

They already had stores in the past. How did that go?

 

[R6Rider]

 

[BennyBlanco]

Makes sense, they own 2 massive mobile games now.

 

[Moriarty1889]

That picture of Phil lmao

Yes Phil has certainly put on the pounds since taking over Xbox. Life is good when your making that kind of money.

 

[Bridges]

Makes sense, they own 2 massive mobile games now.

Plus they have Minecraft and all the Bethesda mobile projects like Fallout Shelter. They've actually got a pretty "decent" catalogue of mobile games at this point before even considering the behemoths of Candy Crush and CoD mobile.

I'm personally uninterested in mobile games but if their store includes Xbox Achievements then my lizard brain will download them

 

[havoc00]

Phil a man with a plan !

 

[Banjo64]

You use an Apple product and the software integration is simply amazing. You use Windows and it’s night and day. It was the same with the windows phone and it’s the same with Android devices. Nothing is integrated with one another. Everything needs a new window.

Can’t see this taking off at all, just look at the interest in their PC gaming storefront.

 

[GHG]

You use an Apple product and the software integration is simply amazing. You use Windows and it’s night and day. It was the same with the windows phone and it’s the same with Android devices. Nothing is integrated with one another. Everything needs a new window.

Can’t see this taking off at all, just look at the interest in their PC gaming storefront.

Honestly they are just throwing shit at a wall and hoping something sticks.

For some reason they are obsessed with this notion of reaching billions of gamers before even becoming competent at satisfying millions.

 

[ChuckeRearmed]

Makes sense. Reminds me of that Google vs Epic document where Epic, Supercell and ABK wanted to join forces and create their own store. Also potentially Riot Games, but they went with a deal from Google.
Though it reminded me that Tencent owns both Supercell and Riot Games. Considering that now ABK and Netease burnt the bridges, it can create an interesting dynamic between Microsoft and Tencent. Then, I think, Ubisoft owns Gameloft so Microsoft can make a deal with them too. Also Microsoft has a decent relationship with both EA and T2 (and they also have their own mobile companies like Zynga owned by T2). Then there are also apps like ChatGPT they can add.

Will be interesting with what content it will launch.

Plus they have Minecraft and all the Bethesda mobile projects like Fallout Shelter. They've actually got a pretty "decent" catalogue of mobile games at this point before even considering the behemoths of Candy Crush and CoD mobile.

COD mobile by itself has two games - huge hames - like COD Mobile (published by Tencent I believe?) and newly released Warzone Mobile (published by ABK). Plus bunch of stuff from Blizzard (like Diablo Immortal and that Warcraft game). And then you have King.

 

[Interfectum]

Makes sense, they own 2 massive mobile games now.

If they pull them off the store and force iPhone users to another store those games will drop off hard.

Not sure what MS can even do with these games other than not fuck them up.

 

[BennyBlanco]

If they pull them off the store and force iPhone users to another store those games will drop off hard.

I would imagine they will take a different angle like if you are subbed to GP use our store and get 10 skinner box tokens a week or something

 

[Interfectum]

I would imagine they will take a different angle like if you are subbed to GP use our store and get 10 skinner box tokens a week or something

Like Riot games…. If the majority of GP subs become a source for cheap loot boxes for existing games what will be their incentive for AAA console games?

 

[RoboFu]

If MS just waits a few more years they could bring the windows phone back that plays actual pc games.

 

[BennyBlanco]

Like Riot games…. If the majority of GP subs become a source for cheap loot boxes for existing games what will be their incentive for AAA console games?

Well that is basically the entire mobile industry. If you wanted to push GP on mobile users like they said they want to that would probably be the only way. Nobody is playing RE8 on a cellphone.

 

[ChuckeRearmed]

If MS just waits a few more years they could bring the windows phone back that plays actual pc games.

I do wish they did not abandon Windows Phone. Even if they were selling it in small amounts, if they could bring it to the modern era - it would be pretty interesting device.

 

[onnextflix5]

When has a third party store ever succeeded on mobile. ms stop wasting ur time.

 

[Imtjnotu]

Please Microsoft don't allow this shit

 

[GHG]

It's hilarious to me that they are doing all this when they had a perfectly viable mobile store that they were unwilling to work on and invest in years ago.

These guys legitimately had some of the best mobile phones on the market (their camera tech was lightyears ahead of the competition at the time) but didn't have a clue how to market them. And now they want to run it back, but this time without the hardware or even a mobile OS?

 

[Kenneth Haight]

Looking more like an android every day

 

[Interfectum]

It's hilarious to me that they are doing all this when they had a perfectly viable mobile store that they were unwilling to work on and invest in years ago.

These guys legitimately had some of the best mobile phones on the market (their camera tech was lightyears ahead of the competition at the time) but didn't have a clue how to market them. And now they want to run it back, but this time without the hardware or even a mobile OS?

Exactly. How many people will bother downloading a new App Store instead of just using the default? Absolutely losing business model. They can’t even beat Sony but assume they can go toe to toe with Apple on the iPhone? The fuck kind of mushrooms is Phil feeding the CEO?

 

[sono]

Good luck

 

[DeepEnigma]

WTF, we love gatcha mobile now!

 

[adamsapple]

That picture of Phil lmao

 

[Vyse]

That picture of Phil lmao

I was just going to say he must have been seriously stress eating during the Activision deal! Omg dude.

 

[Fabieter]

And here I thought the parity Series S/X bullshit was bad. Get ready for the future where every new Xbox game also needs to be playable on fucking smartphones!

There isnt a whole lot of a difference between best smartphones and series s rho.

 

[Zathalus]

I wonder if Sony would follow suit, FGO is decently popular. It's funny, Microsoft wishes it has the console sales of Sony while Sony wishes it has the mobile and GaaS reach that Microsoft has.

 

[Rusty Shackelford]

Hey Phil,

 

[Sushi_Combo]

And here I thought the parity Series S/X bullshit was bad. Get ready for the future where every new Xbox game also needs to be playable on fucking smartphones!

Microsoft saving gaming, one smartphone at a time.

 

[Zathalus]

There isnt a whole lot of a difference between best smartphones and series s rho.

There is a rather large difference. The best performing Phone, the Iphone 15 Pro can't even match the Steam Deck. Phones need to increase by around 4x in GPU power in order to match the Series S. Assuming current pace of progress it would be another 8 years or so before the very best mobile phone matches the Series S. We will already be well into the next generation of consoles then.

 

[Sushi_Combo]

There is a rather large difference. The best performing Phone, the Iphone 15 Pro can't even match the Steam Deck. Phones need to increase by around 4x in GPU power in order to match the Series S. Assuming current pace of progress it would be another 8 years or so before the very best mobile phone matches the Series S. We will already be well into the next generation of consoles then.

It's not always about raw power. The power of optimization is where the magic truly happens.

 

[Zathalus]

It's not always about raw power. The power of optimization is where the magic truly happens.

I was assuming optimizations. Iphone 15 Pro running RE Village (written specifically for Metal) gets outperformed by a Steam Deck by over 60% (running a translation layer, no not even native). The Series S is like 2.5x as powerful as the Deck.

 

[bender]

Zune Marketplace

 

[SmokedMeat]

Of course they need a Store. Can’t be happy just focusing on games.

 

[reinking]

Zune Marketplace

 

[Unknown Soldier]

LOL imagine thinking they can force all the Boomers playing Candy Crush to install a separate app store just to play that.

Candy Crush will go to zero revenue in a week. That's one way to kill the value of the ABK acquisition I guess.

 

[rapid32.5]

 

[adamsapple]

Need a wide screen capture, which gaming CEO is he pointing to as the next acquisition?

 

[T-0800]

Need a wide screen capture, which gaming CEO is he pointing to as the next acquisition?

McDonalds.

 

[Heisenberg007]

Exactly. How many people will bother downloading a new App Store instead of just using the default? Absolutely losing business model. They can’t even beat Sony but assume they can go toe to toe with Apple on the iPhone? The fuck kind of mushrooms is Phil feeding the CEO?

He keeps selling new pipedreams to clueless executives in suites of a VERY rich company, so he stays relevant and keeps drawing the paycheque.

It really is as simple as that.

 

[onQ123]

My problem with this is that they are not bringing more to the table they're taking stuff from the tables people was already sitting at & taking it to their table just to get people to come to their table to eat stuff that would have been on the other to start with.

 

[Daneel Elijah]

My problem with this is that they are not bringing more to the table they're taking stuff from the tables people was already sitting at & taking it to their table just to get people to come to their table to eat stuff that would have been on the other to start with.

The fact that they had to buy ABK to even think of doing so make it even worse. When the best way to play a Xbox game is to buy it on Steam, the best way to stream one of their games is on geforce now, and now we have hints that they want to offer it on Playstation and Switch? It make it feels like their own hardware is not the recommended way to play their games and use their services. You can hate on Portal and PSVR 2 all you want, but they allow Sony to have a place in those areas and it is mostly of very good quality. I hope that the rumored new controller is good, because it is the only good news waiting in the Xbox ecosystem in my opinion.