Phil Spencer: The Xbox business will become ‘untenable’ if it remains ‘irrelevant’ on mobile.

He said that over the past five or six years, all of the growth in the $200 billion global gaming business has come from the mobile segment, while console and PC revenues have remained “relatively flat”.

Spencer, asked about a recent comment Microsoft made to a regulator about being a small player on PC and mobile, said: “I don’t think anybody needs that quote from us to understand how irrelevant we are in mobile. Anybody who picks up their phone and decides to play a game would see that on their own.

“And PC as well, our trials and tribulations over the last five, six years in PC gaming are well kind of documented, and we continue to work at it, and I love the work that the Xbox app team has been on, and our PC studio is doing great work on PC, but it takes time.”

He added: “In terms of the Activision opportunity, and I keep saying this over and over, and it is true, it definitely starts with a view that people want to play games on every device that they have, and in a funny way, the smallest screen that we play on is actually the biggest screen when you think about the installed base in phone.

“That’s just a place where if we don’t gain relevancy as a gaming brand—we’re not alone in seeing this—over time, the business will become kind of untenable, for any of us. If we’re not able to find customers on phones, on any screen that someone wants to play on, you really are going to get segmented to a niche part of gaming that running a global business will become very challenging.”

Spencer added: “As a percent of the overall gaming business, the console business is shrinking, because the overall business is growing and console stays relatively flat as a business, same thing with PC.

“And then when you look at the largest gaming companies out there, Tencent being the biggest gaming company in the world, so much of their revenue comes from mobile, and then they put their business success that they’ve earned through the work that they’ve done into the market acquiring other studios at a very fast rate.

I think the issue is Phil is trying to act like the two parts of the industry are merging but mobile is still a separate part of gaming with it's own outlets, analysts, and research organizations with different goals.

I do understand that Activision will 9bring in a lot more revenue for Xbox, but there are thing Phil can do for PC and uh...console to increase Xbox revenue without mobile, or with modest investment in mobile than trying to act like the two sides are fusing together when the audiences are mostly drastically different.

For example, let's take a look at all of this year for Xbox Series consoles that are console exclusive or even AA minimum first party major releases

1.






14.






44.



With all these games you can increase revenue with the proper advertising. 2022 is a big year and some of these titles could potentially be ported to mobile gaining extra revenue without compromising game design or the development process, and companies like King could be used for more mobile intensive games, Keep the audiences separate I say. Out of the 44 imaginary games I think that my favorite is number 32 the most, but still Phil should work on releasing more games of variety, not just the imaginary type as we have now as enjoyable as those are, because by also releasing real tangible games you can make non-imaginary money on sales, thus making the Xbox business more viable without overdoing it on mobile.

Just a thought.
 

Arsic

Member
This mobile market needs to be Asian market focused . The shit just doesn’t work here in the west like it does there.

Even a game like path of exile is far more greedy out in the Asian version.

If they want growth there they need to acquire a few companies making really good gacha games.

Is Phil ready to create waifu collector games ?
 

xClout

Gold Member
eli wallach tuco GIF
 

laynelane

Member
I've never really thought of Tencent as a gaming company. I know they buy a lot of gaming companies, of course. That aside, mobile is very lucrative so I can see why many companies are interested in it.
 

Hendrick's

If only my penis was as big as my GamerScore!
Did he turn to the camera an wink while saying this? I'm sure regulators know by now the Acti-Blizz deal is a mobile play.
 

Clear

Member
Doesn’t make sense, he said GamePass was profitable

Creative accounting and PR messaging. As I've written in the past turning a profit isn't what's important. Its profit level relative to opportunity cost, because if you are investing huge sums into a marginally profitable division investors are (rightfully) going to question whether those funds couldn't be deployed more effectively.
 

Ozriel

Member
Is it really that hard to read what he said?
Here, I’ll reproduce it for you again

That’s just a place where if we don’t gain relevancy as a gaming brand—we’re not alone in seeing this—over time, the business will become kind of untenable, for any of us. If we’re not able to find customers on phones, on any screen that someone wants to play on, you really are going to get segmented to a niche part of gaming that running a global business will become very challenging.

What he’s saying is that console share remains relatively flat, and mobile keeps growing. So he believes that anyone that doesn’t get a foothold in mobile will eventually become a bit player in gaming as mobile continues to dominate.

You can argue with that (and certainly I don’t believe mobile is growing THAT fast) but these takes about Gamepass etc don’t make any sense.

Worth noting that for Spencer, ‘mobile’ also includes streaming via cloud to mobile phones.

Headline is also misleading. In Phil’s statement, he’s pretty much talking about all the traditional console makers. Not just Xbox. Hence the ‘any of us’ part
 
Last edited:

reinking

Member
https://www.globaldata.com/data-ins...lecom/market-size-of-mobile-gaming-in-the-us/

  • The market size of mobile gaming in the US reached a value of $13 billion in 2021
  • US ranks third largest player in the global mobile gaming market with a share accounting for 14% of the global market size in the mobile gaming segment
  • The US’s mobile gaming market saw a CAGR of 21% during 2017-2021

*no idea if it is correct or not. I just did a quick google out of curiosity.
 

feynoob

Member
https://www.globaldata.com/data-ins...lecom/market-size-of-mobile-gaming-in-the-us/

  • The market size of mobile gaming in the US reached a value of $13 billion in 2021
  • US ranks third largest player in the global mobile gaming market with a share accounting for 14% of the global market size in the mobile gaming segment
  • The US’s mobile gaming market saw a CAGR of 21% during 2017-2021

*no idea if it is correct or not. I just did a quick google out of curiosity.
Loot boxes on mobile games are insane these days.
People are spending $100 on packs like it's nothing.
Some even spend $5k or more a year on a single game.
Plus, mobile have insane amount of userbase. So free consumers.
 

Ozriel

Member
lol come on. Maybe dont go out there spending $80 billion on console focused publishers if you dont think you can survive without mobile.

You don’t know one major arm of Activision Blizzard King is one of the biggest mobile studios in the world?

On an enthusiast forum, for that matter. That’s wild.
 

feynoob

Member
You don’t know one major arm of Activision Blizzard King is one of the biggest mobile studios in the world?

On an enthusiast forum, for that matter. That’s wild.
That was always the case. People here are just hung on COD.
Still, Phil needs to shut up.

You dont need to mention this shit every time.
 
Top Bottom