Phil Spencer Discusses Microsoft’s Xbox Handheld and Mobile Store Plans

Phil Spencer, the CEO of Microsoft Gaming recently sat down with Bloomberg to discuss how the company plans to reach more gamers after completing its acquisition of Activision Blizzard. The gaming exec confirmed that Microsoft wants to release an Xbox handheld, and he also said that the company is still working on an Xbox mobile store and exploring more studio acquisitions.

Regarding the rumored Xbox handheld, Spencer said that the “expectation is that we would do something” to grow this market. While Microsoft is already working on several prototypes, Spencer said that the first Xbox handheld is still a few years out. In the meantime, the company will continue to optimize its Xbox app for Windows-based gaming handhelds.

“Longer term, I love us building devices,” Spencer said. “And I think our team could do some real innovative work, but we want to be informed by learning and what’s happening now.” The exec also added that “to reach new players, we need to be creative and adaptive of new business models, new devices, new ways of access. We’re not going to grow the market with $1,000 consoles.”

As for the Xbox mobile store that was expected to be released in July, Spencer confirmed that it has now been delayed to give the company more time to do market research. The gaming executive also admitted that Microsoft can’t just launch a web-based mobile store and hoping that people accustomed with using the App Store and Play Store will be interested in it.  “If we’re just hoping, like, if we build it, they will come, I’m going to bet that doesn’t work,” Spencer acknowledged.

Microsoft is also waiting to see how regulators around the world are going to force Apple and Google to open up their mobile platforms to alternative app stores. “I think the ball is moving in the right direction,” Spencer said. “I think this idea of open platforms, where users have more choice, creators have more choice, you see the momentum, right?”

Lastly, Spencer confirmed in the interview that Microsoft will port more of its Xbox games to other consoles. “I do not see sort of red lines in our portfolio that say ‘thou must not,’” the exec said. However, Spencer added that Microsoft hasn’t yet decided if the next Halo game is going to be multi-platform.

Despite Microsoft shutting down Arkane Austin and Tango Gameworks earlier this year (the latter has since been acquired by PUBG developer Krafton), the gaming exec also said that Microsoft is still looking at acquiring more studios, even though nothing was on the table at the moment. “We definitely want to be in the market, and when we can find teams and technology and capability that add to what we’re trying to do in gaming at Microsoft, absolutely we will keep our heads up,” Spencer said.