Microsoft has been making a significant push into the mobile gaming market in recent years, with the launch of its xCloud game streaming service and the acquisition of major game studios such as Bethesda. However, the tech giant’s mobile gaming aspirations may be in jeopardy due to regulatory obstacles.
Microsoft has faced several challenges in expanding its mobile gaming services, particularly in certain markets where regulatory restrictions have impeded its efforts. In China, for instance, the company has faced regulatory hurdles that have prevented it from launching xCloud or offering any type of cloud gaming service to Chinese consumers. In 2020, the company was forced to shut down its Mixer streaming platform in the country due to similar regulatory issues.
In the European Union, Microsoft has faced similar regulatory challenges, particularly related to antitrust concerns. The company has been accused of anticompetitive behavior in the past, and regulators in the EU have been scrutinizing its gaming business practices. In April 2021, the European Commission launched a formal antitrust investigation into the company’s proposed acquisition of ZeniMax Media, the parent company of Bethesda Softworks.
The investigation is centered around concerns that the acquisition could give Microsoft an unfair advantage in the gaming market by limiting competition and restricting consumers’ access to other games. If the European Commission finds that Microsoft has violated antitrust laws, the company could face significant fines and may be forced to divest some of its gaming assets.
The regulatory challenges faced by Microsoft have left its mobile gaming ambitions in limbo, with the company unable to launch its services in certain markets or expand its offerings due to regulatory restrictions. This has put the company at a disadvantage compared to its competitors, particularly in the fast-growing mobile gaming market.
Despite these challenges, Microsoft has continued to invest in its gaming business, particularly in the cloud gaming space. The company recently announced that it would be expanding its xCloud game streaming service to iOS and PC platforms, which could help it reach new audiences and overcome some of the regulatory obstacles it faces in certain markets.
In addition, Microsoft has also been focusing on expanding its first-party game offerings through acquisitions such as Bethesda and the launch of new game studios. By investing in exclusive content, the company can attract more users to its gaming services and create a competitive advantage over other gaming platforms.
Overall, while regulatory challenges have created hurdles for Microsoft’s mobile gaming ambitions, the company’s continued investment in the gaming industry suggests that it remains committed to the market and is exploring ways to overcome the obstacles it faces.
