Microsoft Is Planning To Launch Xbox Mobile Gaming Store To Take On Apple And Google
Portfolio Pulse from Rounak Jain
Microsoft Corp. (MSFT) is planning to launch its own Xbox mobile gaming store to compete with Apple (AAPL) and Google (GOOG, GOOGL). The move follows the completion of the $69 billion Activision Blizzard acquisition. Microsoft Gaming CEO Phil Spencer is in talks with partners to launch the store, potentially in 2024, to offer more choices for game monetization on mobile devices. The European Union's Digital Markets Act, which scrutinizes app store practices and may force Apple to allow sideloading apps, could provide an opportunity for Microsoft's mobile gaming ambitions.
December 01, 2023 | 12:39 pm
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Apple may face increased competition in the mobile gaming space with Microsoft's planned Xbox store. The EU's Digital Markets Act could force Apple to allow sideloading, potentially reducing its control over the iOS app ecosystem.
The introduction of Microsoft's Xbox mobile gaming store represents a direct challenge to Apple's dominance in the mobile gaming market. With the EU's Digital Markets Act potentially requiring Apple to permit sideloading, Apple's App Store could lose some of its competitive edge, which may negatively impact AAPL's stock price in the short term.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Google's Android app store could encounter new competition from Microsoft's Xbox mobile gaming store, especially as the EU's Digital Markets Act may alter the app store landscape.
Microsoft's entry into the mobile gaming market with its Xbox store could disrupt Google's current position in the industry. The EU's Digital Markets Act may also impact Google's app store practices, potentially leading to a negative short-term impact on GOOG's stock price.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Alphabet's Google could see increased competition in the mobile gaming market from Microsoft's Xbox store initiative, with the EU's Digital Markets Act potentially affecting app store dynamics.
Similar to GOOG, Alphabet's GOOGL shares are likely to be affected by the same factors: increased competition from Microsoft's Xbox mobile gaming store and the EU's Digital Markets Act. This could lead to a negative short-term impact on GOOGL's stock price.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Microsoft is planning to enter the mobile gaming market with an Xbox store, which could diversify its revenue streams and capitalize on the upcoming EU regulations that may weaken the dominance of current app stores.
Microsoft's announcement of a mobile gaming store is a significant strategic move that could capture market share in the lucrative mobile gaming sector. The timing aligns with regulatory changes that could benefit new entrants. This news is likely to be viewed positively by investors, potentially increasing MSFT's stock price in the short term.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90