Microsoft, ready to challenge Apple and Google in the mobile gaming market

We already knew that Microsoft was planning to launch the Xbox mobile game store this year. Now we know the date: the new store will be available in July and, according to experts in the field, it will be an attack on the giants Apple and Google.

What is this challenge? First, Xbox will offer discounts on in-app purchases of popular titles like Candy Crush Saga. Second, the store will open up to other game publishers.

In the case of Xbox, Microsoft is making a deliberate strategic choice: web rather than apps. The company is revitalizing the web for maximum accessibility, “on all devices, in all countries, without restrictions, regardless of the restrictive policies of closed app stores,” said Xbox President Sarah Bond.

Microsoft’s goal? To create a seamless and unified gaming experience across consoles, PC and mobile. Cross-platform blockbuster Minecraft could be one of the first to join the web store, according to Bond. “This ‘Web Store’ marks the beginning of our journey to build a trusted app store anchored in the world of gaming,” added an Xbox spokesperson.

But establishing a web-only mobile store promises to be a major challenge, and it remains to be seen how Microsoft will manage to position it as a credible alternative to games already available on competing apps. Sarah Bond suggests that Microsoft plans to go beyond the web, implying that it won’t be long before Google and Apple face a direct and powerful rival.

Impact of the Digital Markets Act

Apple and Google now dominate the mobile gaming market, charging commissions of around 30% of sales. At the end of 2023, Microsoft Gaming CEO Phil Spencer has already mentioned talks with partners to launch a dedicated Xbox app store, especially after the entry into force of the European Union Digital Markets Act this year.

This Digital Markets Act (DMA) aims to make the digital market “fairer” and thus paved the way for the creation of direct-to-consumer webshops, bypassing the taxes imposed by Apple and Google. In early May, TikTok users, for example, reported the existence of a TikTok web store that allows them to buy virtual currency at a discounted price.

Mobile games market

If Microsoft has lagged behind its competitors in the $90 billion mobile gaming industry, the Xbox division, boosted by its $69 billion acquisition of Activision Blizzard (Candy Crush, Call of Duty), is poised to make a splash . Candy Crush, with five billion downloads since 2012 and $20 billion in revenue, is a major asset.

“We want to be able to deliver content from Xbox and our partners to any screen that someone wants to play on,” Phil Spencer told the Financial Times last year. “We can’t do that on mobile today, but we aspire to create a world that becomes a reality when these mobile devices open up.”

As of 2020, tech giants are fighting to dominate the future of digital storefronts for mobile games. Epic Games, the creator of Fortnite, launched its “Project Liberty” campaign in 2020, offering players a 20% discount on Fortnite virtual currency purchased from their site. In response, Apple and Google banned Fortnite from their app stores. Epic fought back by suing the two giants for monopolistic practices over their mobile ecosystems.

Stay up to date with the latest news. Follow DCBusiness on Google News as well

Did you find this article interesting?

Follow the DCBusiness Facebook page to keep up to date with the most important news on economic developments, tax changes, decisions on salaries and pensions, as well as other analysis and information both internally and externally.