According to Phil Spencer, CEO of Microsoft Gaming, the company is negotiating with partners to open a mobile games store that will compete with Apple and Google. Microsoft could exploit longstanding resentment against market leaders to gain belligerent support for its boutique offering.
“This is an important part of our strategy and we are actively working on it today, not just ourselves but also in discussions with other partners who also want more choice in how they can come to market. Telephone,” said Mr. Spencer in an interview in Sao Paulo during the CCXP Comics and Entertainment Fair.
The executive declined to give a specific date for the launch of the online store, which earlier reports said could happen as early as next year. “I don’t think it will be for a few more years, I think it’s sooner,” he said.
Microsoft’s mobile store would also find itself in a difficult regulatory environment for smartphone-based digital marketplaces. Fortnite creator Epic Games has sued Apple and Google (Alphabet) over their iOS and Android store practices, claiming they are unnecessarily restrictive and unfair. Apple doesn’t allow competing stores on its iPhone and iPad platforms and accepts a 30% drop in sales on most purchases. Game manufacturers have spoken out against these fees.
Epic lost its battle against Apple, but asked the U.S. Supreme Court to intervene in September. Apple also asked the court to overturn an order that would force the company to allow developers to redirect customers to other payment methods. Epic is still in a legal battle against Google, which allows third-party app stores on its devices. The European Union’s Digital Markets Act, which is about to come into force, could force Apple to open up its App Store ecosystem. Apple disputes this regulation.
Microsoft could exploit longstanding resentment against market leaders to gain belligerent support for its boutique offering. Xbox’s “cloud gaming” technology already allows users to stream hit games to mobile phones. “We talked about choice, and today you don’t have a choice on your cell phones,” Spencer said. “For Xbox to be relevant not only today, but also in the next 10 or 20 years, we need to be strong on many screens.”
Earlier this week, Xbox CFO Tim Stuart said at the Wells Fargo TMT Summit that Microsoft wants to make the original games and Game Pass available on “every screen that can play games,” including rival consoles. “It’s a bit of a change in strategy. We’re not announcing anything big here, but our mission is to bring our first-party experiences.” [et] “Our subscription serves all screens on which games can be played,” Mr Stuart said. “That means smart TVs, mobile devices and what we would have previously viewed as competitors, like PlayStation and Nintendo.”
Source: Phil Spencer, CEO of Microsoft Gaming
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Fortnite publisher Epic is fighting Google in court over the Play Store commission after taking Apple to court in 2021 with a similar case