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Microsoft Sets July for Mobile Game Store, Targets Apple, Google

Microsoft to launch its own mobile game store in July, challenging Apple and Google's app store dominance.

By Alex P. Chase

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5/9, 19:00 EDT
Apple Inc.
Activision Blizzard, Inc
Microsoft Corporation
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Key Takeaway

  • Microsoft announces a mobile game store launching in July to compete with Apple and Google, featuring games like Candy Crush Saga.
  • The store aims to bypass app store fees by being web-based, leveraging EU's Digital Markets Act allowing direct-to-consumer sales.
  • This move intensifies the battle over digital storefronts, following Microsoft's $69 billion acquisition of Activision Blizzard.

Microsoft Enters Mobile Gaming Market

Microsoft Corp. has announced plans to launch its own mobile game store on the internet in July, marking a significant move into the mobile gaming sector. The store will initially feature Microsoft's own games, including the popular Candy Crush Saga, as revealed by Xbox President Sarah Bond during the Bloomberg Technology Summit. This initiative represents a direct challenge to the dominance of Apple Inc. and Google’s app stores, which have been the primary platforms for mobile game distribution, charging developers approximately a 30% fee on sales.

Sarah Bond emphasized the accessibility of the new store, stating it will be available on the web, making it "accessible across all devices, all countries, no matter what, independent of the policies of closed ecosystem stores." This approach aims to bypass the restrictions and fees associated with the current app store models operated by Apple and Google.

Regulatory Changes and Market Dynamics

The timing of Microsoft's move is influenced by the European Union’s Digital Markets Act, which came into effect this year. The legislation allows tech companies to establish their own direct-to-consumer web stores, circumventing the fees imposed by Apple and Google. This regulatory change has already seen companies like TikTok exploring direct sales through a web store, offering TikTok coins at a discount to users.

Microsoft's entry into the mobile gaming market comes after its $69 billion acquisition of Activision Blizzard, the owner of Candy Crush and Call of Duty franchises. The acquisition positions Microsoft's Xbox unit to make a significant impact in the $90 billion mobile gaming industry. Candy Crush alone has been downloaded 5 billion times since its 2012 debut, generating $20 billion in revenue.

The Battle Over Digital Storefronts

The launch of Microsoft's mobile game store is part of a broader conflict among tech giants over the control of digital storefronts for mobile games. This battle gained public attention in 2020 with Epic Games Inc.'s Project Liberty campaign against Apple and Google's app store policies. Epic Games offered users a 20% discount on Fortnite currency purchased through its website, leading to Apple and Google removing Fortnite from their app stores. Epic subsequently filed lawsuits against both companies, accusing them of illegal monopolistic control over their mobile ecosystems.

Management Quotes

  • Sarah Bond, Xbox President at Microsoft:

    "The store is launching on the web, versus an app, so it’s accessible across all devices, all countries, no matter what, independent of the policies of closed ecosystem stores."