Microsoft’s (MSFT, Financials) gaming chief Phil Spencer is actively exploring acquisitions to expand Xbox’s presence in handheld gaming and mobile game stores, Bloomberg News reports.
Spencer pointed out that any negotiations might center on improving geographical variety, especially in Asia.
Adding more mobile startups would complement the portfolio Microsoft acquired last year from its $69 billion purchase of Activision Blizzard, Spencer said. Nonetheless, he pointed out that Microsoft is now more focused on integrating Activision’s personnel, hence significant acquisitions are unlikely in the foreseeable future.
“We definitely want to be in the market, and when we can find teams and technology and capability that add to what we’re trying to do in gaming at Microsoft, absolutely we will keep our heads up,” Spencer said. He noted that there is nothing “imminent.”
Spencer also highlighted intentions to expand Xbox’s game development teams, stressing China. Through a partnership with Tencent (TCEHY, Financials), Microsoft recently debuted a new mobile edition of their venerable game, Age of Empires. The real opportunity is to partner with creative teams in China for global reach, Spencer said.
Microsoft’s gaming business wants to maximize the functionality of the Xbox software on current handheld devices and work with hardware makers to guarantee Xbox game compatibility in the near future.
About the intended mobile game web store, Spencer mentioned that debut has been postponed for more market research. Xbox President Sarah Bond first revealed the store in May, then anticipated it to open in July. In this regard, Apple’s (AAPL, Financials) App Store and Alphabet’s (GOOGL, Financials) Google Play remain leaders, so posing a challenge for Microsoft.
Spencer, seeing expansion in cloud, PC, and console gaming, is hopeful about Xbox’s future. Pointing to a good trend for 2025, he said, “The Xbox business has never been more healthy.”
This article first appeared on GuruFocus.
