Xbox Boss Reveals Microsoft Considered Buying Zynga Before Pursuing Activision Blizzard

In a recent statement, Xbox boss Phil Spencer disclosed that Microsoft had considered purchasing mobile games company Zynga before it was acquired by Take-Two in 2022. The acquisition would have been part of a significant move for Microsoft into the mobile games market, which it has yet to make headway in. Spencer admitted that Microsoft had “no strategy to win organically in mobile gaming” and has struggled to find a path forward as Xbox players have shown little interest in mobile experiences, and mobile players have not been drawn to console experiences.

According to Spencer, Microsoft had spent significant time working on the Zynga acquisition before it was ultimately off the table. However, the company realized that it needed something “even bigger” to gain a foothold in the mobile gaming space.

Why Activision Blizzard was the Better Choice

Microsoft’s focus on the mobile gaming market led it to Activision Blizzard, which had made significant strides in the space through its subsidiary King (Candy Crush). Microsoft was particularly interested in Activision’s capacity as one of the largest mobile game publishers outside of China.

Spencer reportedly discussed the mobile opportunities presented by Activision Blizzard with Microsoft CFO Amy Good and how its portfolio could transform Microsoft. This was the primary motivator for Microsoft’s purchase of Activision Blizzard, according to Spencer’s interviews leading up to the CMA investigation of the merger.

Justifying the Acquisition

As the FTC investigation into the merger continues, Microsoft is expected to continue detailing its ambitions in the mobile games market to justify its planned acquisition and provide alternative discourse around the investigation. The FTC has so far focused on Microsoft’s capacity to make upcoming blockbuster games exclusive to Xbox and PC.

Microsoft had considered buying Zynga before it was acquired by Take-Two in 2022. However, the company realized that it needed something “even bigger” to gain a foothold in the mobile gaming space. This led the company to Activision Blizzard, which had made significant strides in the mobile gaming market through its subsidiary King. Microsoft’s primary motivator for the acquisition was Activision Blizzard’s capacity as one of the largest mobile game publishers outside of China.