Tim Sweeney did something remarkable today, remarkable even in this environment where video game companies are competing fiercely for our dollar. He praised Microsoft and expressed his support for their plans.
Before I explain why it’s so surprising, first let me share what he did say. On Twitter earlier today, he shared this message:
“Microsoft launching mobile app stores to compete with the iOS App Store and Google Play Store is huge news, and highlights that today’s PC stores from Microsoft, Valve, and Epic are tomorrow’s leading contenders to expand to mobile.”
This was a quote tweet to an article by the Financial Times, where Microsoft again explains their intention to take advantage a new opportunity to launch their own mobile game store on Android and Apple platforms.
For those who don’t know, Apple and Android have faced scrutiny from the same regulators looking at the Microsoft – Activision deal. This is because they currently hold a duopoly over mobile app stores. Both don’t allow other companies to put up their own app stores on their own operating systems. Some OEMs have circumvented these limits on Android devices, such as Samsung, while others have passed over it by forking Android, like Huawei has with HarmonyOS.
However, the EU is currently working on new rules to force the two companies to publish third party app stores to iOS and Android. If that gets approved, other regulators may compel the two to allow the same on other regions, if they don’t just give up and make it universal.
In particular, Microsoft themselves tie their hopes on the upcoming Digital Markets Act to formally make third party app stores possible. If Apple and Alphabet appeal on provisions on the act, they could delay its passing for an indeterminate amount of time.
In the Financial Times report, Phil Spencer said this about Microsoft’s app store plans:
“We want to be in a position to offer Xbox and content from both us and our third-party partners across any screen where somebody would want to play.
“Today, we can’t do that on mobile devices but we want to build towards a world that we think will be coming where those devices are opened up.”
Phil also said that it would be trivial for Microsoft to bring Xbox and Game Pass service over to mobile devices. Of course, Microsoft has plans to make native mobile apps for games like Candy Crush Saga and Call of Duty as well.
Getting back to Tim Sweeney, he had a follow up tweet when asked what their plans say about their faith in their core market:
“Microsoft’s core market is way over a billion active users and they want many billions. I love this ambition.”
So here’s what’s remarkable about Tim’s statements here. Tim’s company Epic Games is partly owned by Microsoft’s competitor, and the current main objector to their Activision deal, Sony. Furthermore, Epic has announced their interest in making a third party app store themselves, for Fortnite. That app store would definitely also compete with Microsoft’s app store.
But if you think about it, at this point in time, it makes sense for Tim to show support to Microsoft. Opening up the market to third party app stores is the common ground Epic Games and Microsoft shares right now. For the two companies to get their goals, they would want to see the same things happen.
One can also note that Tim also stated that Valve could also be a future contender on mobile. Given the huge conflicts of interest with their partial ownership by Sony, that is probably the extent to which Tim can show his support to Microsoft. It’s certainly a very interesting time in video games.
