Microsoft's pursuit of a dominant position in the gaming industry has involved a series of strategic moves, particularly deals that position the company competitively in the rapidly evolving gaming landscape. However, recent revelations from FTC's hearings with Microsoft as part of its acquisition attempt of Activision Blizzard have shed light on the 'one that got away': a potential acquisition of mobile gaming giant Zynga that didn't materialize.
During the FTC hearings, Phil Spencer, Microsoft Gaming CEO, shared some insights about the company's journey to break into the mobile gaming market.
A core issue, according to Spencer, is that "Xbox has no strategy to win organically in mobile gaming." The traditional Xbox console experience don't seem to resonate with mobile gamers, nor do console gamers crave a mobile experience.
Spencer opened up about Microsoft's previous attempt to acquire Zynga as part of its strategy to solve this issue. Zynga, known for successful franchises such as Farmville and Zynga Poker, has a significant footprint in mobile gaming. However, despite Microsoft's willingness and considerable effort put into a potential deal, Zynga was ultimately acquired by Take-Two Interactive for a record-breaking $12.7 billion in 2022.
