Phil Spencer, the head of Microsoft’s gaming division, discussed the company's ambitious plans for further expanding Xbox. The company is exploring potential acquisitions and is preparing to enter the portable gaming market.
In an interview with Bloomberg, Spencer mentioned that deals that could add "geographical diversity," particularly in Asia, might be promising. Acquiring another mobile company could enhance the gaming franchises Microsoft acquired through last year's $69 billion takeover of Activision Blizzard.
“We definitely want to have a presence in the market, and when we can find teams, technologies, and opportunities that complement what we are trying to do in gaming at Microsoft, we will definitely act,” emphasized Spencer.
Microsoft is also aiming to diversify its game development teams by cooperating more with China. The company has already launched a mobile version of Age of Empires in partnership with Tencent.
“It was a great opportunity for us to learn from creative teams that have unique capabilities. The real opportunity lies in partnering with creative teams in China for the global market,” the head shared.
Spencer hinted that Microsoft is working on its own portable gaming device, but its release is expected in a few years. “In the long run, I like the idea of creating devices,” he noted. “And I think our team could do really innovative work, but we want to build on existing experience and what is happening now.” The company will currently focus on enhancing the Xbox app on existing devices and collaborating with hardware manufacturers.
The launch of Xbox's own mobile game online store has been postponed, as the team conducts further market research. Microsoft is awaiting the outcomes of legal cases related to Apple and Google’s mobile stores to ensure an effective entry for its smartphone store.
“If we just hope that if we build a store, users will come on their own, I’d bet that it won't work,” Spencer remarked.
Despite cutting 2,500 jobs and closing three game studios, Spencer is optimistic about the growth of mobile games and Microsoft's overall gaming business in 2025.
A multi-platform approach is becoming an important part of Microsoft’s strategy. Following the successful release of the first Xbox games for PlayStation and Nintendo Switch, the company plans to continue this practice. According to Spencer, Microsoft sees no "red lines" in its game portfolio regarding their release on other platforms.
“The Xbox business has never been healthier,” he emphasized, noting growth in cloud and PC gaming as well as console usage. “To attract new players, we need to be creative and adapt to new business models, new devices, and new access methods. We won't be able to expand the market with consoles costing $1,000.”
Source: Bloomberg
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