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Microsoft was targeting mobile gaming since 2019

Microsoft’s ongoing case with the US Federal Trade Commission (FTC) has revealed interesting insights beyond the realm of console wars. Recently unsealed documents from the hearing shed light on Sony’s awareness that the Activision Blizzard deal posed no threat to its console business, as well as Microsoft’s intentions to potentially outspend Sony and enter the mobile gaming industry.

The documents exposed an email from Xbox chief Phil Spencer, in which he compared Microsoft’s gaming business to Polaroid cameras, highlighting the struggle to adapt to digital photography and drawing an analogy to Microsoft’s lack of focus on mobile gaming. Spencer emphasized the importance of having a mobile gaming strategy and admitted that Microsoft currently lacked one.

In the email, Spencer stated, “We have no strategy to win organically in mobile gaming. I can’t come up with one.” He mentioned the option of closing down Xbox and starting a mobile gaming company within Microsoft as a potential approach.

Microsoft’s recent deal with Activision Blizzard, particularly for the popular game franchise “Call of Duty,” is seen as a significant move to establish itself in the mobile gaming industry. Activision Blizzard possesses a portfolio of mobile games, including “Call of Duty,” “Guitar Hero,” and “Candy Crush Saga.”

Last October, Microsoft announced its plans to compete with Apple and Google, two dominant players in the mobile gaming business. Microsoft has been critical of Apple and Google for exerting control over the largest gaming platforms and aims to offer an alternative delivery mechanism for games.

The case between Microsoft and the FTC has brought to light Microsoft’s ambitions in the mobile gaming space and its determination to challenge the existing players in the industry.

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