February 25, 2024

Microsoft's Moves to Take on Google & Apple in the Mobile Market

Under the leadership of CEO Satya Nadella, Microsoft is set to make a remarkable re-entry into the mobile business. The CEO didn’t hesitate to acknowledge their wrong footing in the past as they exited the market, coming up with a multi-pronged strategy to challenge tech giants like Google and Apple in the mobile market.

Here are three strategic moves Microsoft might potentially take to establish its superiority in the mobile market, including the gaming industry.

$69 Billion Deal Between Microsoft and Activision

Microsoft has finalized a staggering $69 billion deal with Activision Blizzard. This, the big tech company positions itself with two of the most popular names among gamers, Call of Duty and Candy Crush Saga. 

Candy Crush Saga accounted for a substantial $721 million in the mobile revenue of Microsoft in 2022.

Besides serving as a pure source of entertainment, they double up as Microsoft’s strategy to make its way to millions of users.

The massive fan base of Call of Duty elevates Microsoft’s revenue. It also opens up potential chances of expansion within the Xbox division. In 2022, it accounted for revenue of $243 million.

This sizable deal cements Microsoft’s position in the gaming industry, besides giving it an edge amidst tough competition raging in the mobile market.

Microsoft’s Strategic Approach To Partnering Mobile Game Stores

Thanks to the Activision deal, Microsoft now has some engaging games for its users, which showed it the path to distributing mobile apps. Currently, Microsoft is trying to pose a challenge to the Google Play Store and Apple’s App Store. 

It might come up with its own alternative app store. Enriching this store with valuable content from Activision, Microsoft is set to provide a viable alternative to users, threatening the duopoly of Apple and Google in the mobile market.

Although Microsoft has set its foot in the cloud gaming industry, the sector is still in the initial stages. The big tech company is bracing up to redefine how their customers can access games on mobile handsets.

The provision of a new app store brings a fresh dimension to its strategy which can disrupt the established markets of Google and Apple.

Investments In Artificial Intelligence By Microsoft

Rightly recognizing the power of AI to transform technology, Microsoft has significantly invested in AI products. Recently, it rebranded Bing Chat to Copilot and developed dedicated apps for Copilot on Android devices and iPhones. 

Interestingly, Google hasn’t launched a dedicated app for its Bard yet.

Microsoft has taken a leap ahead in the AI race. This innovative stance of Microsoft showcases its commitment to innovation, besides positioning it as a leader in applications backed by AI.

Microsoft’s investments in AI will enhance user experience, besides lending a tactical advantage to the tech giant to create future-ready products to redefine the mobile experience.

Therefore, Microsoft’s re-entry into the mobile market is more than a comeback. It’s an attempt to challenge the established duopoly in the industry. 

With a formidable gaming portfolio, Microsoft is taking an ambitious stride to enhance gaming and pioneer AI integration. In the near future, Google and Apple are likely to face a new contender, with Microsoft on its path to making an impact in the mobile market.

 

 

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