Microsoft CEO Phil Spencer Discusses Xbox Cloud Gaming on iOS and Plans for Xbox Store on Mobile
In a recent interview with The Verge, Microsoft Gaming CEO Phil Spencer shared more details about the company's plans for Xbox Cloud Gaming and the possibility of bringing it to iOS. With Apple forced to open up its store in Europe following the implementation of the Digital Markets Act and easing the requirements for game streaming apps on iOS, many wondered if Microsoft would take advantage of this opportunity.
However, Spencer made it clear that an Xbox Cloud Gaming app for iOS is not in the works due to Apple's compliance plan, which has received heavy criticism. According to Spencer, Apple's proposal falls short in terms of opening up the platform and fostering competition. He expressed that there is no room for Microsoft to monetize Xbox Cloud Gaming on iOS under these conditions.
On the other hand, Spencer reiterated Microsoft's interest in establishing an Xbox store on mobile as soon as possible. He believes that this move would drive engagement, citing popular games like Candy Crush, Call of Duty, Diablo Immortal, and Minecraft as examples. The executive emphasized that Microsoft does not view Game Pass as the sole focus of their gaming ecosystem.
Spencer clarified that the company is content with gamers who prefer purchasing games regularly within the Xbox ecosystem and beyond. He mentioned that subscriber revenue from Game Pass accounts for only a portion of Microsoft's content and service revenue, estimated at around 10-15%. Game Pass is currently subscribed by 34 million users and is considered a successful aspect of the business. However, Spencer emphasized that the overall health of the Xbox business is the primary focus, rather than making all gamers Game Pass subscribers.
As Microsoft continues to navigate the gaming landscape, the company remains determined to provide a diverse range of options for gamers, whether they choose to subscribe to Game Pass or not.
Analyst comment
Neutral news. The market is expected to remain stable. Microsoft does not plan to bring an Xbox Cloud Gaming app to iOS due to Apple’s compliance plan. However, Microsoft is interested in opening an Xbox store on mobile, which could drive engagement. Game Pass is a good business for Microsoft, but they do not require everyone to become a subscriber. The focus is on the overall health of the Xbox business.
