Phil Spencer, the head of Xbox, has shed light on the ongoing acquisition of Activision Blizzard, emphasizing that the deal is primarily driven by a desire to strengthen Xbox’s presence in the mobile gaming sphere.
In an interview with Eurogamer during Gamescom 2023, Spencer articulated Xbox’s strategic intent to establish a substantial mobile presence. He underscored that the $68.7 billion acquisition of Activision Blizzard is fundamentally rooted in the company’s mobile capabilities.
Spencer stated, “The reason we’re in the acquisition discussion with Activision Blizzard King is around their mobile capability. Because it’s just something we don’t have. We obviously already have Call of Duty on our platform, we already have Diablo on our platform. So it’s not about new games that Xbox players don’t have access to today. It is about a capability on mobile, and some broader ambitions that we have on the largest gaming platform, which is mobile phones.”
Head of Xbox, Phil Spencer, on what success means to Xbox ? #Xboxgamescom pic.twitter.com/8suVEl1Xm8
— Xbox UK (@xboxuk) August 23, 2023
When questioned about the possibility of the deal falling through, Spencer revealed that he doesn’t think in terms of a “plan B.” Instead, he emphasized a continued commitment to finding relevance in the mobile gaming space.
He added, “We know people think about Activision in the console and PC space, but it’s actually dominating in the mobile space, which is in Microsoft’s interest. So any other plan would still be about [that]. We think that for Xbox to continue to thrive, we need to have some relevant place in the whole province.”
Despite Microsoft’s recent legal victory against the Federal Trade Commission, the company submitted a final report to the UK’s Competition and Markets Authority (CMA) to challenge the regulator’s block on the Activision Blizzard acquisition. Microsoft also announced plans to sell game streaming rights to Ubisoft, a move aimed at addressing the CMA’s concerns regarding the acquisition.
In summary, Xbox’s pursuit of Activision Blizzard is motivated by a strategic focus on bolstering its mobile gaming capabilities. Phil Spencer emphasized the importance of establishing a significant presence in the mobile gaming sphere for the continued success of Xbox.
