Microsoft’s gaming head still seeking acquisitions, positive on Xbox’s future – report

Microsoft’s (NASDAQ:MSFT) video-gaming chief Phil Spencer is still eyeing acquisitions and planing how to compete and collaborate in the markets for handheld gaming devices and mobile stores, Bloomberg News reported.

Deals that add “geographic diversity,” including in Asia, could be worthwhile, said Spencer said in an interview to the news agency, the report noted.

Acquiring another mobile company would add to titles Microsoft gained following its $69B acquisition of Activision Blizzard last year, Spencer noted.

However, Spencer added that currently, massive deals are probably not being considered as Microsoft is spending a lot of time absorbing employees of Activision.

“We definitely want to be in the market, and when we can find teams and technology and capability that add to what we’re trying to do in gaming at Microsoft, absolutely we will keep our heads up,” Spencer commented. He noted that there is nothing “imminent.”

In addition, Spencer said that Microsoft intends to diversify the teams working on games by looking more to China.

The U.S. tech giant developed a new mobile version of Age of Empires, a game that first debuted in the 1990s, by collaborating with Tencent (OTCPK:TCEHY) (OTCPK:TCTZF). The two companies launched the game worldwide in October.

“The real opportunity is to partner with creative teams in China for global,” Spencer stated.

On handheld game devices, Spencer said the expectation is that the company would do something in that category. Though the company is working on prototypes, Spencer has requested his group to look at the market and build its vision based on what it learns. Such a device is a few years out, according to the executive.

Spencer also said that the in the coming months, designers and engineers would aim to improve the Xbox app work for existing portable devices and collaborate with hardware manufacturers to ensure their products sync with Xbox games and experiences.

The Xbox app right now is good rather than great on some of the gadgets, he noted.

Microsoft’s planned online store for mobile games has been delayed as the company is undertaking more research on the market, according to Spencer. Xbox President Sarah Bond had announced the store in May, with an expected launch date of July. However, staffers are still talking to mobile developers, the report noted.

Microsoft still does not have an effective way to get its own store on mobile phones, the report added. Apple’s (AAPL) App Store and Alphabet’s (GOOGL) (GOOG) Google Play dominate the market.

“I think the ball is moving in the right direction,” said Spencer. “I think this idea of open platforms, where users have more choice, creators have more choice, you see the momentum, right?”

After the acquisition of Activision, Xbox laid off over 2,500 staff and shut three game-design studios. With Microsoft exiting, what management calls, a difficult year in a tough mobile gaming market, Spencer is optimistic about 2025.

“The Xbox business has never been more healthy,” Spencer noted, citing growth in cloud, PC gaming, and console usage. “The business is performing right now, and I think that means a more healthy future for hardware and the games we build.”