NEW YORK: Microsoft, a latecomer to the mobile space, is making strategic moves to establish its presence. Recent acquisitions, including game-maker Activision Blizzard and a $10 billion investment in OpenAI, position the software giant to capitalize on the mobile market.
The company’s renowned gaming assets, such as “Candy Crush Saga,” and advancements in artificial intelligence through OpenAI’s ChatGPT, offer Microsoft insights into consumer behavior.
The Activision Blizzard deal not only enhances Microsoft’s Xbox division but also strengthens its footing in mobile gaming. “Candy Crush Saga,” a popular title acquired in the deal, contributes significantly to Microsoft’s $3.5 billion mobile revenue in 2022.
Microsoft’s Investment in OpenAI’s ChatGPT
The company’s investment in OpenAI’s ChatGPT, a rapidly adopted chatbot with over 100 million users within two months, extends Microsoft’s reach beyond its traditional business clientele.
These strategic moves enable Microsoft to compete in the mobile app space, with plans for a potential gaming app store. The company’s involvement in the Epic Games lawsuit against Apple and Google reflects its interest in challenging the dominance of proprietary payment systems. Microsoft’s Xbox shop could emerge as a formidable alternative, posing a threat to the fees collected by Apple and Google.
While Microsoft’s growing influence in mobile presents lucrative opportunities, it also invites increased regulatory scrutiny. The European Commission’s focus on tech “gatekeepers” may impact Microsoft’s strategy, particularly as it aims to disrupt the mobile app ecosystem dominated by Apple and Google. The move into mobile could mark a significant shift for Microsoft, which has largely avoided regulatory attention since its antitrust case in the late ’90s.
