Phil Spencer has claimed the Xbox business would become 'untenable' if it doesn't gain relevance on mobile, agreeing that the Activision Blizzard deal is primarily about Candy Crush, not Call of Duty.
Candy Crush Saga - First Ever LevelHe said that over the past five or six years, all of the growth in the $200 billion global gaming business has come from the mobile segment, while console and PC revenues have remained “relatively flat”.
Spencer, asked about a recent comment Microsoft made to a regulator about being a small player on PC and mobile, said: “I don’t think anybody needs that quote from us to understand how irrelevant we are in mobile. Anybody who picks up their phone and decides to play a game would see that on their own.are well kind of documented, and we continue to work at it, and I love the work that the Xbox app team has been on, and our PC studio is doing great work on PC, but it takes time.
He added: “In terms of the Activision opportunity, and I keep saying this over and over, and it is true, it definitely starts with a view that people want to play games on every device that they have, and in a funny way, the smallest screen that we play on is actually the biggest screen when you think about the installed base in phone.
“That’s just a place where if we don’t gain relevancy as a gaming brand—we’re not alone in seeing this—over time, the business will become kind of untenable, for any of us. If we’re not able to find customers on phones, on any screen that someone wants to play on, you really are going to get segmented to a niche part of gaming that running a global business will become very challenging.”
Spencer added: “As a percent of the overall gaming business, the console business is shrinking, because the overall business is growing and console stays relatively flat as a business, same thing with PC.being the biggest gaming company in the world, so much of their revenue comes from mobile, and then they put their business success that they’ve earned through the work that they’ve done into the market acquiring other studios at a very fast rate.
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