Xbox Talking to Partners for Mobile Store

[The Mad Titan]

Microsoft Corp. is talking to partners to help launch a mobile app 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 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. But 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. Fortnitemaker 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.”

 

[Canon]

This will fail

 

[Gizmo_Duck]

“Our phones failed, please let us put our storefronts on yours, 30+ year old competitor”

“If not, we’ll go run and tell the regulators you aren’t letting us compete on your hardware”

 

[Half A $]

The pictures/video he has on Nadella must be some foul shyt!

 

[winb83]

On what platform? The only ones that matter are Android and iOS neither of which is going to be conducive to a 3rd party store.

 

[Gizmo_Duck]

On what platform? The only ones that matter are Android and iOS neither of which is going to be conducive to a 3rd party store.

thats why they’ve been cheerleading Epic in their fight against Apple

 

[winb83]

thats why they’ve been cheerleading Epic in their fight against Apple

Epic wants to put apps in the app store and Google Play but not be forced to use Apple and Google's payment system to avoid that 30% tax. They want those app store's reach without paying. That's a bit different from launching a separate app store.

The only way a 2nd app store is really going to be successful is if it's included natively. Google and Apple not gonna do that. Sideloading is too limited.

 

[Diondon]

 

[Dorian Breh]

These dudes are completely shameless.

 

[Pressure]

They purchased ABK.

It’s obvious they’re going to work to maximize their monetization of King.

it’s also known they need to update the store.

 

[ORDER_66]

These dudes are completely shameless.

facts...

 

[Gizmo_Duck]

Microsoft can’t even get people to use their store on their own OS.

And they think people are entrenched in the console space

 

[Instant Classic]

I don't see an issue with this, and I see others attempting this. Mobile phones are at a place where they can deliver AAA gaming, so this does make sense. However, I am unsure Apple and Google allow this without getting their cut in purchases, which I am sure Microsoft and others don't want.

 

[Dorian Breh]

Microsoft can’t even get people to use their store on their own OS.

And they think people are entrenched in the console space

Great point. It says a lot that when you first install windows and launch Edge for the first time and type in 'Chrome' or 'Firefox' in the search field, they take you to a page begging you to keep using Edge. Stans keep talking about how dominant Windows is, but never bring up how shytty the Xbox app on Windows is and how the same games often have worse FPS compared to their Steam counterparts. Not to mention how MS hides installation files from the user so you can't even mod your shyt, which is one of the major appeals of PC gaming.

 

[ItWasWritten]

Will they ever talk to their games division ?