Where Microsoft is Looking to Create Its Own Mobile App Store

Microsoft is on a mission to persuade regulators in various countries that buying up a sizable portion of the video gaming business in one fell swoop was beneficial for the entire world. In addition, the corporation has touted its attempts to forge a “neutrality pact” with unions and do away with NDAs and non-compete restrictions.

In order to compete with Apple and Google, Microsoft is developing an Xbox mobile store that will directly sell games on mobile devices. Early this year, the software giant first alluded to a “next-generation” store it would “build for games,” but has now secretly divulged specifics of the plans in files with the UK’s Competition and Markets Authority (CMA).

The CMA has requested Microsoft for background information as it looks at the $68.7 billion Activision Blizzard merger. Microsoft claims that expanding its mobile gaming presence was a major driving force behind the purchase in its filings. It appears that it has intentions for this area, including the development of an Xbox mobile gaming platform and shop.

Companies Growth

It would be extremely difficult to create a viable alternative to the Google Play Store or the Apple App Store, so Microsoft will need to court third-party developers if it wants to succeed.

By agreeing to a set of guidelines that would permit developers to independently manage their own app stores on its Xbox mobile platform and provide their own payment systems to handle in-app payments, the business appears to be laying the framework in this area. That is undoubtedly a feature that Apple does not provide. However, Microsoft stated earlier this year that it is “committed to bridging the gap on the remaining principles over time.” These pledges do not yet completely apply to Xbox systems.

Microsoft claims that the upcoming Xbox mobile shop would follow the same guidelines, which might be enough to entice developers to the platform. Epic Games, a company that has teamed up with Microsoft in recent years to oppose Apple’s App Store restrictions, is one organisation that might be especially interested.

As a result of the acquisition of Activision Blizzard’s content, the transaction will increase Microsoft’s capacity to develop a next-generation gaming shop that works across a variety of devices, including mobile. Building on the existing gaming communities owned by Activision Blizzard, Xbox will try to expand the Xbox Store to mobile devices in order to draw users to a new Xbox Mobile Platform, according to documents filed by Microsoft. 

“However, a significant change in consumer behaviour is necessary to move customers away from the Google Play Store and App Store on mobile devices. Microsoft aspires to encourage gamers to explore new things by providing well-known and well-liked content. 

Microsoft concedes that its merger with Activision Blizzard would also offer the business a strong foothold in the mobile game market. According to Microsoft, Activision Blizzard generated more than half of their revenue in the first half of 2022 from mobile games and related sources.

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Consumer Behaviour

The business acknowledged that it would need “a shift in consumer behaviour” to distinguish itself from Apple and Google. Brad Smith, vice chair and president of Microsoft, announced earlier this year that the company would no longer adhere to the so-called “Open App Store Principles,” which forbade them from utilising app store information to compete with the apps of other developers. Apple forbids third-party businesses from opening app stores on iOS, thus excluding them from those platforms.

In addition, the company noted in the filing, introducing a new mobile gaming suite would “improve the appeal of Microsoft’s advertising business.” Though the business would need the support of other publishers to make headway in the larger app market. Given that Epic Games recently fought with Apple, Microsoft may have a buddy in this company. Tim Sweeney, the CEO of Epic, claimed that Apple needs to support other app shops or outside payment options. Users can already play Fortnite on almost any mobile device using Xbox Cloud Gaming.

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