Microsoft wants to make its own game store

By: Rohit Yadav

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Updated on: 21-Mar-2023

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According to reports from the Financial Times, Phil Spencer, the head of gaming at Microsoft, believes that the EU's Digital Market Act (DMA) will assist the company in achieving its goal of creating a mobile app store. The DMA is set to come into effect in March 2024, and it allows businesses to load their app stores onto iPhones and Android phones by requesting that Apple and Google open up their systems.

In a statement to the press, Spencer said, "Our goal is to provide Xbox and content from our third-party partners on any screen where people want to play." He also added, "Today, we can't do that on mobile devices, but we want to build towards a world that we think will be coming where those devices are opened up."

However, regulators in the US, Europe, and the UK are concerned about the potential impact on competition if Microsoft acquires Activision Blizzard, the developer of Call of Duty, one of the most popular game franchises worldwide. As a result, Microsoft is currently in a battle with these regulators.

A recent report from Politico indicates that the European Union has formally issued an antitrust warning to Microsoft regarding its proposed acquisition of Activision Blizzard. The notice reportedly outlined concerns about the potential threat to fair competition in the video game market, as EU officials explained the reasons behind their objections to the deal.

The US Federal Trade Commission (FTC) has also filed a lawsuit against Microsoft, seeking to prevent its acquisition of Activision Blizzard. Despite this, Phil Spencer believes that the acquisition will boost competition on the dominant platform for gaming, which he identifies as smartphones. Currently, the distribution of games and apps on this platform is largely controlled by a "duopoly" consisting of Apple and Google, a situation that some antitrust authorities have expressed concern about.