Why Microsoft's next big Xbox acquisition should be in the mobile game space

Xbox Game Pass xCloud Source: Jez Corden | Windows Central

Microsoft has been on a gaming acquisition spree in recent years. Smaller studios like Double Fine, Undead Labs, and inXile joined up with the Xbox stable, aslope larger teams similar Bethesda, Playground Games, and more than. Microsoft also signaled in its recent investor calls that it intends to brand more than gaming acquisitions in the future, in part to eternalize the attractiveness of Xbox Game Pass, its all-you-tin-consume gaming subscription service.

Many of usa in the Xbox community and podcast circuit (check out my podcast by the way) frequently discuss the topic of acquisitions, as fans and commentators imagine what studios or publishers might fit into Microsoft'south strategy. There are always fresh rumors well-nigh who may join the troupe, with anybody from EA to Sega and Capcom brought up as a potential acquiree.

While I take no hard information or knowledge virtually whatsoever potential upcoming acquisitions for Xbox, I do have some thoughts about the type of studio Microsoft should maybe gun for, at to the lowest degree analytically speaking.

Here's why I think Microsoft's next acquisitions should wait beyond the Television receiver screen, and towards that smaller device in your pocket.

Why should Xbox buy a mobile game studio?

Source: Newzoo

Simply put, the mobile gaming industry is admittedly massive, and enjoys the king of beasts's share of recent industry growth. Co-ordinate to Newzoo, the industry stands at roughly $180 billion dollars as of 2022, and 59% of that comes from mobile spend. Most of the growth is also in mobile too, hitting 26%, while consoles and PC hit less than half of that in the same time period. Despite its size, the mobile game industry comes with some significant challenges.

The toll of user acquisition in the mobile game space is similarly enormous. The competition is incredibly ambitious, and curation on storefronts similar the iOS store and Google Play ways that bigger studios and teams need to pay out literal millions of dollars just to get their apps seen. Outside of unique indie hits that blow up on social media, navigating the marketplace is circuitous and quite costly, if you don't know what you lot're doing. Arguably, I'd say Microsoft has shown a lack of expertise in this area — or at least a lack of will.

Minecraft Earth Source: Matt Brown | Windows Central Minecraft Globe, now close downward.

Microsoft has dabbled in mobile games to mixed success. Naturally, they caused Minecraft Pocket Edition, but many of their recent home-grown mobile gaming efforts didn't succeed. Halo: Spartan Strike, Gears Pop!, Forza Street, Minecraft Globe, and other mobile games didn't really set the world on burn. Microsoft did acquire a mobile studio when information technology picked up Bethesda called Alpha Dog, but they don't seem to have a big breakout success every bit of writing.

Mobile games, especially of the free-to-play variety, require persistent and updates to remain business feasible for a bigger company. Of course, Microsoft also owns Minecraft which is dominant on mobile, as well as Fallout Shelter and Microsoft Solitaire, all of which are successful. Microsoft is also competing with some serious heavy hitters in that space, including Tencent, Activision's King sectionalization, and many others. I'm not suggesting Microsoft competes caput-on with native mobile games, yet. My central statement for picking upwards a mobile studio moves beyond building native mobile experiences.

Mobile-aware experiences for Xbox Game Pass are a must

Minecraft Dungeons Xbox Cloud Gaming Hero Source: Zachary Boddy | Windows Primal

I don't call back Microsoft necessarily needs a mobile studio or publisher to build native mobile games, although that's certainly a potentially lucrative option. Increasingly, as I use Xbox Game Pass on my phone, I realize that near of the games available simply aren't good experiences on a small screen.

Most games congenital for Xbox Game Pass cloud streaming (also known equally Project xCloud) are TV-offset, which comes with a bunch of problems for mobile cloud streaming. Certain, some of them exercise piece of work pretty well. Streets of Rage iv with its side-scrolling activity and bright, comic volume-way art really pops on a smaller display. The bear on controls also piece of work well, because you don't need to rotate the camera and so on. The vast majority of games, yet, have a litany of small-scale ergonomic problems. Pillars of Eternity, for example, has incredibly fiddly controls fifty-fifty with a regular Xbox controller, allow alone with touch. It'southward too very text-heavy, and the fonts in the menus and dialogue are incredibly difficult to read. Other games have like issues, ranging from overly complex controls that require an Xbox controller phone clip to play properly, or tiny fonts. Fifty-fifty things similar lengthy gameplay loops represent a poorer experience on mobile, where y'all may be called to put your phone away to address a notification pop-upwardly or hide your device from your dominate in a meeting at short notice.

There is a light at the cease of the tunnel, though. Minecraft Dungeons represents the first truly cloud-aware game on Xbox Game Laissez passer' deject gaming platform. The menus respond to bear upon inputs. The touch UI has a bespoke design. You tin can gun for shorter gameplay loops past selecting smaller maps. The stock-still photographic camera perspective helps with video encoding for cloud streaming and gameplay with a touchscreen, too.

Xbox Game Pass Cloud Xcloud Monster Train Source: Windows Cardinal Monster Train is a great example of a mobile-like game that works on Xbox Game Pass cloud.

The problem with Minecraft Dungeons is that information technology is the only game on Xbox Game Pass cloud gaming that feels like a truly "cloud aware" mobile feel right at present. Every other game there feels shoehorned into your phone. If it's unplayable without a controller or a larger brandish, I'd contend that the whole point of getting Xbox-quality games on your phone is nullified.

If Microsoft picks up a mobile game studio (or even a publisher), they could aid rectify this situation. They could be dedicated to building more Minecraft Dungeons-level cloud-aware games from other Xbox studios. They could focus on games that are designed to be platform-agnostic, like Minecraft Dungeons, and help farther the platform too.

If Microsoft wants Xbox Game Pass to grow more rapidly on mobile, building experiences that feel native is an absolute must.

Xbox must grow beyond the panel

8bitdo Xbox Controller xCloud Source: Jez Corden | Windows Central

Console gaming is growing, but it's growing decidedly slower than mobile gaming is. Sure, yous can argue that's considering of the more than predatory pay-2-win strategies often deployed on mobile, but even even so, Microsoft has a responsibility every bit a platform holder to aggrandize to this potentially lucrative market — both for devs, and the future of their ain concern. And no, that's not to propose deject streaming will replace console gaming. Naturally (and crucially) they complement each other, since the cloud is comprised of console hardware, and a panel-beginning developer environment.

This could aid Xbox attain beyond its tens of millions of customers, towards its get-go billion customers.

And I'm speaking wholly analytically here. I'm by no ways a mobile gamer, and like many of yous reading this, I'd rather prefer Microsoft picked up some of the great cadre-focused studios before competitors did. That said, growth on mobile ultimately helps Xbox abound on console as well, reaching the next generation of gamers where they are.

Xbox Game Pass cloud streaming is obvious the starting time, and right, step into this brave new world. Games like Halo Infinite will no doubt help to boost this platform on mobile and tablets also, as volition Starfield. At that place are rumors that Microsoft is working with the likes of Hideo Kojima (and maybe other developers too) on cloud-first games, that will most likely be device-doubter along with information technology. No dubiousness Microsoft is already planning to beef up Xbox Game Pass' mobile-friendly offering, with games like Minecraft Dungeons, Monster Train, and Slay the Spire already leading the charge.

A studio (or several) dedicated to making, or enhancing games for Xbox Game Pass deject streaming could aid boost the platform on mobile devices and the web. This could help Xbox reach beyond its tens of millions of customers, towards its showtime billion customers.

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