Microsoft Challenges Apple And Google with Web-Based Gaming Store: Report
Portfolio Pulse from Shivani Kumaresan
Microsoft Corp is set to launch a web-based mobile gaming store in July, challenging the dominance of Apple Inc. and Alphabet Inc's Google. The store will initially feature Microsoft's games, including discounts on in-game items, with plans to expand to other publishers. This move, facilitated by the EU's Digital Markets Act, aims to bypass the traditional app store fees and is bolstered by Microsoft's acquisition of Activision Blizzard Inc.
May 10, 2024 | 9:55 am
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NEGATIVE IMPACT
Apple may face competitive pressure from Microsoft's new web-based gaming store, which aims to bypass the traditional app store model and its associated fees. This could impact Apple's revenue from its app store.
Apple's app store, with its significant revenue from fees, could see a downturn in earnings as Microsoft's web-based store offers an alternative platform for game publishers, potentially reducing Apple's market dominance.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
NEGATIVE IMPACT
Alphabet Inc's Google could experience a decrease in app store revenue and market share as Microsoft's web-based gaming store provides an alternative platform for mobile games, circumventing Google's app store fees.
Google, similar to Apple, relies on app store fees for a portion of its revenue. Microsoft's move to establish a web-based gaming store could attract game publishers and consumers alike, potentially reducing Google's app store revenue and market share.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Activision Blizzard, now under Microsoft, stands to benefit from the launch of Microsoft's web-based gaming store, potentially increasing the visibility and sales of its games, such as Candy Crush and Call of Duty.
As a subsidiary of Microsoft, Activision Blizzard's games are likely to be prominently featured in the new web-based store, potentially increasing sales and player engagement for its key titles.
CONFIDENCE 75
IMPORTANCE 65
RELEVANCE 70
POSITIVE IMPACT
The iShares U.S. Technology ETF, with Microsoft as a key component, may benefit from Microsoft's innovative move into the web-based gaming market, potentially driving up the ETF's value.
Microsoft's aggressive push into new markets, such as web-based gaming, could have a positive impact on the iShares U.S. Technology ETF's performance, given Microsoft's influence within the ETF.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Microsoft's launch of a web-based gaming store represents a strategic move to diversify its revenue streams and challenge the app store dominance of Apple and Google. This could enhance Microsoft's position in the mobile gaming market, especially following its acquisition of Activision Blizzard.
Microsoft's strategic move to launch a web-based gaming store directly challenges the current app store model dominated by Apple and Google, potentially increasing its market share in the mobile gaming sector. The acquisition of Activision Blizzard strengthens its gaming portfolio, making this move particularly impactful.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
The Technology Select Sector SPDR Fund, which includes Microsoft as a significant holding, could see positive movement based on Microsoft's strategic expansion into web-based gaming.
Given Microsoft's substantial weight in the XLK ETF, any positive development for Microsoft, such as the launch of a new gaming platform, could positively influence the ETF's performance.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 50