Microsoft is still in the market for video game acquisitions, Xbox lead Phil Spencer says — and he wants to partner more in China

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What you need to know

  • Microsoft Gaming CEO Phil Spencer spoke with Bloomberg regarding the Xbox business, sharing details on a number of topics.
  • Spencer says that Microsoft is keeping an eye on video game acquisitions that can “add to what we’re trying to do” but that there’s nothing “imminent” to expect.
  • Spencer also noted that in order to further Microsoft’s global gaming reach, Xbox will continue to partner with teams in China.
  • While companies spent billions on acquisitions during the pandemic, 2023 and 2024 have seen mass studio closures and layoffs.

As a seasoned researcher who has closely followed the gaming industry for years, it’s clear that Microsoft is not only playing to win but also expanding its territory with calculated moves. Phil Spencer’s recent interview with Bloomberg confirms that Microsoft remains open to strategic acquisitions and partnerships that align with their vision for gaming at Microsoft.

One of the biggest gaming companies in the world isn’t done with acquisitions.

During an interview with Bloomberg, Phil Spencer, head of Microsoft Gaming, mentioned that they are considering potential acquisitions of more gaming companies. Over the past few years, Microsoft has been quite active in purchasing gaming entities, starting around 2018. Notable acquisitions include ZeniMax Media, parent company of Bethesda, for approximately $8.1 billion and Activision Blizzard King for a staggering $72 billion.

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Spencer made it clear that Microsoft is keen on participating within the gaming market. If we come across teams, technology, or capabilities that complement our gaming endeavors at Microsoft, rest assured, we will always be on the lookout. However, he emphasized there’s no immediate plan for major acquisitions, as Microsoft may choose to avoid large transactions for now.

Despite many corporations, including Microsoft, making significant acquisitions during the pandemic, the situation in 2023 and particularly 2024 has been marked by studio closures and a surge of layoffs. This translates to Microsoft Gaming letting go of around 2,500 employees and shutting down three studios.

Microsoft looks to China for future partnerships

Beyond potential future purchases, Microsoft is also keen on collaborating with Chinese studios. As expressed by Spencer, the significant prospect lies in partnering with Chinese creative teams for a global reach.

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Following the completion of its purchase of Activision Blizzard, Microsoft has formed a collaboration with Chinese game publisher NetEase. This alliance will see Blizzard Entertainment’s games, starting with Overwatch 2 and World of Warcraft, return to China. Additionally, they are looking into making some popular NetEase titles available on Xbox gaming consoles.

Microsoft’s Xbox Game Studios, along with World’s Edge, teamed up with the influential Chinese game developer Tencent for the release of Age of Empires Mobile, debuting in October 2024.

It would be intriguing to observe which game titles Microsoft will collaborate further with Chinese publishers, aiming to expand the influence of their gaming labels.

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2024-11-13 20:09