Microsoft is reportedly planning to create a brand new app store for games on iOS and Android by 2024, as long as they receive approval for their acquisition of Activision Blizzard.
According to multiple reports, this app store will allow players to access Xbox and third-party games on any device, including smartphones.
Phil Spencer, Microsoft's gaming head, told Financial Times that he is confident about the company's ambitions and views the EU's Digital Market Act (DMA) as a positive development. The DMA, set to take effect in March 2024, will enable companies to load their app stores on iPhones and Androids by requesting that Apple and Google open up their systems. Spencer believes that this will lead to greater competition in the smartphone gaming market, currently dominated by Apple and Google.
However, Microsoft's acquisition of Activision Blizzard is currently under regulatory scrutiny in the US, Europe, and the UK. The European Union has warned Microsoft of antitrust concerns regarding its bid to acquire the gaming giant, and the US Federal Trade Commission has sued Microsoft over competition concerns and the impact on the gaming industry. Microsoft argues that the acquisition will increase competition in the smartphone gaming market, where Apple and Google hold a "duopoly" over game and app distribution.
Microsoft had announced its plans for the app store in 2022 but requires Apple and Google to allow third-party storefronts for it to become a reality. The DMA could facilitate this, but there is a possibility of Big Tech companies appealing, potentially delaying enforcement beyond the March deadline. Despite these challenges, Microsoft remains committed to its goal of offering Xbox and content from both Microsoft and third-party partners across any device where people want to play, including smartphones.