Microsoft to Launch Mobile Game Store, Challenging Apple and Google Dominance
Microsoft revealed at the Bloomberg Technology Summit its plans to launch its own mobile game store in July. The store will debut on the web and will be accessible across all devices. Initially, it will feature Microsoft's first-party portfolio, including popular titles like Candy Crush and Minecraft, with an expansion to incorporate offerings from other publishers in the future. The move is a direct response to the 30% fee imposed by Apple and Google on sales via their platforms. Microsoft had hinted at the development of a new "Xbox Mobile Platform" back in 2022, coinciding with its acquisition of Activision Blizzard.
Key Takeaways
- Microsoft will introduce its mobile game store in July, initially accessible on the web and all devices.
- The store will showcase Microsoft's first-party portfolio and will later welcome other publishers to join.
- The objective is to provide an alternative to the 30% fees enforced by Apple and Google on sales through their mobile app stores.
- This initiative follows Microsoft's 2022 hint at a mobile store, accentuated by its acquisition of Activision Blizzard to enhance its presence in mobile gaming.
- Microsoft's mobile gaming store will focus on regions outside the EU, at a time when the EU's Digital Marketing Act (DMA) is pressing Apple and Google to open their mobile app stores.
Analysis
Microsoft's entry into the mobile game store arena presents a competitive challenge to the dominance of Apple and Google, striving to offer developers an alternative amid mounting concerns over the hefty 30% fees. This strategic move, which was foreshadowed by the Activision Blizzard acquisition, has the potential to significantly impact US-based developers and gamers. While the DMA in the EU may have influenced this decision, Microsoft's primary target markets lie outside Europe. In the near term, we can anticipate heightened competition and diversity in the mobile gaming landscape. Over the long run, this move could reshape market shares and exert pressure on competitors to review their fee structures and business models.
Did You Know?
- Microsoft's Own Mobile Game Store: Refers to a new digital distribution platform for mobile games, developed and managed by Microsoft. The store is slated to launch in July 2024, featuring Microsoft's first-party game titles such as Candy Crush and Minecraft. This initiative aims to compete against the existing mobile game stores operated by Apple and Google, which levy a 30% fee on sales.
- Xbox Mobile Platform: Denotes Microsoft's broader strategy in mobile gaming, signaling its plan to establish a dedicated mobile gaming ecosystem under the Xbox brand. This strategic move was foretold in 2022 when Microsoft announced the acquisition of Activision Blizzard to bolster its presence in mobile gaming.
- 30% Fee on Sales: This pertains to the percentage of revenue that Apple and Google presently charge developers and publishers for the sale of their mobile apps and games through the App Store and Google Play Store. Microsoft's new mobile game store aims to provide an alternative by avoiding such a substantial fee, potentially attracting more developers and publishers to its platform.