The gaming industry continues to expand exponentially. With more new handheld gaming consoles and VR headsets entering the market, it is expected to grow even further. But the real money for the gaming industry lies in a common everyday device, a smartphone. Currently, the mobile gaming sector is bigger than PC and console. And this reason was one of the motivating factors for Microsoft Xbox to acquire Activision Blizzard King.

But their quest to conquer the mobile industry is not yet over. And the biggest hurdles in their way are two tech conglomerates, Google and Apple. Now, Xbox could seek help from fellow game studios like Ubisoft and Electronic Arts.

Why is a collaboration between Xbox and EA/Ubisoft needed?

It is no secret that Xbox is looking to tap into the mobile gaming industry. For this reason, they acquired ABK for a whopping sum of $68.7 billion. This huge investment is already starting to justify itself, with many releases lined up for 2024. But Microsoft also has another plan in motion.

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Microsoft’s been gearing up for the Xbox gaming mobile store for a while now, and it was a big part of why it bought Activision-Blizzard. It wasn’t just to secure mobile games as they exist, but to also bring Activision Blizzard King games to help fuel a new Universal Store, including mobile. With their combined strength, they have many first-party titles ready to launch on mobile. But it still won’t be enough compared to the size of Google and Apple.

While Xbox may have a quality catalog, they are nowhere near the quantity Google and Apple have to offer. As of 2022, the Google Play Store contained approximately 478,000 games. On the other hand, Apple’s App Store contained 460,000 games in 2022. The sheer volume of both these stores will force Microsoft to look for partners.

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A point to be noted here is Microsoft seemingly has all the tools ready for creating a mobile store. It has an ad-tech platform to deliver advertising, the tech infrastructure to facilitate a store, copilot, servers, etc. Now it just needs partners. It can’t take on Google/Apple on this new frontier alone. And here’s where developers like Ubisoft and Electronic Arts become essential.

Issues the Xbox gaming mobile store will face

• Software

Convincing developers like Ubisoft and EA will be a daunting task for Microsoft. Several issues will arise if they try to move forward with a dedicated mobile store. The first and foremost will be availability. Google Play Store and Apple App Store are successful primarily because they own the software running the phones; Android and iOS.

Microsoft Xbox on the other hand, will enter as a third-party distributor on these devices. The viable solutions for them will be to start creating smartphones again or partner with a smartphone manufacturer to bring their store into their devices.

• Integrating Xbox Game Pass

Another issue they will face is how to fit Xbox Game Pass to the mobile industry. While PC and Console gamers don’t shy away from spending, the mobile industry is majorly based on free-to-play culture. Game developers on smartphones earn majorly from in-game purchases and ads. This dynamic will pose a challenge for Microsoft on how to implement its Xbox Game Pass.

• Competition: How will Google and Apple react

But the biggest issue if they decide to move forward with a mobile store is the reaction from Google and Apple. We have seen Google and Epic Games fighting in court over the former’s control over the Android apps market. So if Microsoft decides to create a store, will Activision Blizzard King mobile games remain on Google/Apple, and will gamers get extra perks for moving to the Xbox mobile store? The answer to this cannot be stated as it depends on what course of action Microsoft decides to take.

What benefit will the partnership have for Ubisoft/EA?

While there may be many issues for doing the deal, the perks are equally enticing. Independent developers like Ubisoft and EA are tired of the control of Google and Apple over mobile gaming. During the proceedings of Google vs Epic Games, a plan to make something similar to what Xbox is planning came to light.

In 2019, Epic Games CEO Tim Sweeney and Armin Zerza discussed a plan to create a partnership between Epic, Supercell, and ABK. The three developers wanted to create “one single mobile games store focused on the distribution of mobile games (“STEAM of Mobile” concept), including a single payment system.”

But now they have a better opportunity to do so as ABK is with Microsoft Xbox.

Xbox Mobile Store coming in 2024?

After the successful acquisition of ABK, Verge’s Tom Warren spoke about it on the IRON LORDS PODCAST. When he appeared on the podcast in October, they discussed the potential of mobile gaming and how it’s a real money maker. At the 1:40:19 mark, Warren says, “Microsoft’s making an Xbox mobile store that could potentially launch next year depending on some of the regulations which have opened up lately.”

Microsoft has all elements in place for this project. All they need is partners. If developers like Ubisoft, EA, Supercell, and Epic Games join forces with them, they can certainly give Google and Apple a fair competition in the gaming world.

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