Microsoft CEO Explains Acquisition Logic: Is It All About Mobile Gaming?

Recently, Microsoft Gaming CEO Phil Spencer dropped a bombshell: the primary motivation behind the massive Activision Blizzard acquisition is their prowess in the mobile gaming sector. Spencer admitted that Microsoft lacks a native platform on mobile, noting that their long-standing focus on consoles and PC has left them without the internal expertise to create mobile hits. In contrast, Activision Blizzard boasts titles like the enduringly popular Candy Crush, Call of Duty: Mobile, and the recent revenue-spinner, Diablo Immortal.

The financial reports support this narrative: in Q2 2022, Activision Blizzard’s mobile revenue hit $832 million, significantly outpacing the combined revenue of their PC ($376M) and console ($332M) segments. This financial dominance, according to Spencer, was the catalyst for the acquisition.

However, the NGA community didn't buy the narrative. Users mocked the statement, with many calling it a hollow PR attempt. Commenters pointed out that if mobile capability was the goal, shouldn't they have bought NetEase instead? The controversy focused on the fact that Diablo Immortal was largely developed by NetEase, with users joking that Blizzard acts more as a brand shell than a developer. Others were even harsher, claiming that Blizzard's recent mobile offerings feel five years behind the current industry standard.