Mobile Acquisitions and Innovation Drive Microsoft's Future in Gaming and VFX

Microsoft Gaming Chief Phil Spencer talks future acquisitions and partnerships in mobile gaming, innovation in gaming and VFX.

Microsoft’s video gaming Chief Phil Spencer says he’s still bullish on the firm’s video gaming and VFX (visual effects) direction despite a tough year. On why Microsoft is keen to do future acquisitions as well as other 'strategic partnerships' to benefit from the fast growing mobile gaming market, Spencer explained.

Microsoft is exploring acquisitions to enhance its presence in Asia, aiming to access local talent and technology for advancements in gaming and VFX. Spencer pointed to the global release of the Age of Empires mobile game, developed with Tencent, as evidence of learning from China's creativity.

“We absolutely want to be in the gaming space, we just want to be in it in a way that adds value to what we’re doing and also can drive value for [Activision Blizzard],” Spencer said, of a future that might see smaller mobile gaming acquisitions follow the $69 billion Activision Blizzard deal.

Spencer also said he was looking ahead to handheld gaming devices and those spaces for innovation. Microsoft is not interested in making large purchases in the near future, but it is improving the Xbox app for portable devices and teaming with hardware makers to optimize the game integration of Xbox games with these gadgets.

Spencer outlined that for the long term, Microsoft's gaming and VFX teams are focused on inventing and coming up with novel devices and solutions based on ongoing industry trends and input from users.