Microsoft Corporation MSFT is preparing to launch a new app store for mobile games and contesting giants Apple Inc. AAPL and Alphabet Inc. GOOG GOOGL for mobile game distribution space.
What Happened: Microsoft plans to introduce a new app store for mobile games on both iOS and Android devices, provided that the proposed acquisition of Activision Blizzard for $75 billion is approved by regulatory authorities, according to the head of Xbox business, reported Financial Times.
During an interview, Phil Spencer, chief executive of Microsoft Gaming, said, “We want to be in a position to offer Xbox and content from both us and our third-party partners across any screen where somebody would want to play.”
“Today, we can’t do that on mobile devices, but we want to build towards a world that we think will be coming where those devices are opened up,” he added.
Microsoft is battling with regulators in the U.S., Europe and the U.K. over its proposed acquisition of Activision Blizzard amid concerns about the possible impact on competition, the report stated.
Nevertheless, Spencer believes the deal could enhance competition in the “largest platform people play on” — smartphones — where Apple and Google currently operate a “duopoly” over game and app distribution.
Why It’s Important: The EU’s Digital Markets Act is anticipated to introduce regulations requiring Apple and Google to allow third-party app stores on their mobile platforms from March 2024.
This prompted Microsoft to prepare for the change as an opportunity, although there could be delays in enforcement if the two tech giants appeal their “gatekeeper” designation, the report noted.
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