Microsoft has proposed creating an Xbox mobile storefront as part of its rationale for completing the acquisition of Activision Blizzard, according to documents it submitted to the UK competition regulator. The company says adding Activision Blizzard’s mobile content would support its effort to build a presence in mobile gaming.
Proposal sent amid deeper CMA review
The submission came after the UK Competition and Markets Authority (CMA) escalated its review of Microsoft’s takeover of Activision Blizzard to a Phase 2 investigation. The CMA has requested additional arguments from Microsoft to justify the deal, and the company presented the mobile strategy as a key benefit of the transaction.
Xbox mobile store concept and competitive hurdles
Microsoft described plans to develop both a platform and a dedicated Xbox store for mobile devices. The company argued that adding Activision Blizzard’s catalog would help form communities and lure players to the new storefront.
At the same time, Microsoft acknowledged the scale of the challenge in taking market share from existing app marketplaces. The documents state that persuading users to move away from the Google Play Store and Apple’s App Store would require a significant change in consumer behavior.
Role of Activision Blizzard titles
Microsoft singled out mobile hits such as Call of Duty: Mobile and Candy Crush Saga—from Activision and King—as examples of content that could encourage players to try an alternative Xbox mobile experience. However, the company also noted the limitations imposed by iOS, where app distribution is tightly controlled by Apple.
Cloud gaming and alternative devices
The submission also referenced the broader push for Xbox Cloud Gaming on portable devices like the Steam Deck and peripherals from Logitech and Razer. Microsoft suggested that efforts to expand into mobile could extend to these handheld platforms as well as smartphones and tablets.
Financial case: mobile revenue and expertise
Microsoft highlighted Activision Blizzard’s mobile revenue as a significant factor: the company says the studio’s mobile division accounts for roughly half of its total revenues from downloads and in-app purchases. Microsoft framed this as an opportunity to invest in mobile development, marketing and advertising capabilities.
Microsoft’s stated gap in mobile
“Currently, Microsoft does not have a significant presence in mobile gaming,” the company wrote in the documents, arguing that the acquisition would bring experience in developing, marketing and publishing mobile games that could be applied within Xbox studios.
Timing and regulator scrutiny
The documents make clear that the acquisition remains under extensive review by the CMA and is not finalized. Microsoft nevertheless expressed optimism about completing the deal and reiterated a target to close the transaction in mid-2023.
Information via The Verge
