Many have been discussing the acquisition deal because it means Microsoft will inevitably take point on the fallout of Activision Blizzard’s recent controversies and ongoing workers strike. It seems adding properties like original PlayStation-exclusives Spyro the Dragon and Crash Bandicoot into the Xbox family is worth that trouble for Microsoft, but some may be overlooking the benefits of having mobile studio King Digital Entertainment under its purview. Between Microsoft’s acquisition and Take-Two Interactive buying Zynga for $12.7 billion earlier this month, it seems AAA developers could lean into the mobile space more than ever.

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Zynga and King’s Influence in the Mobile Space

Take-Two’s acquisition of Zynga, announced on January 10, was a huge move that marked something of a transition for the publisher. Zynga rose to fame on the back of Facebook games like FarmVille, and then became a largely mobile-focused developer. Some of its biggest franchises beyond FarmVille include Zynga Poker and Words With Friends, but the studio has also worked on licensed properties including Game of Thrones: Slots Casino and Harry Potter: Puzzle & Spells. This reach may extend to the Take-Two library, as CEO Strauss Zelnick has discussed bringing BioShock, GTA, and more to mobile.

King has just as much, if not more name recognition than Zynga thanks to its flagship property, Candy Crush Saga. The casual match-three puzzle game is a juggernaut that has spawned numerous spin-offs and similar ventures such as Bubble Witch Saga and Blossom Blast Saga. Activision Blizzard acquired King in February 2016 for nearly $6 billion, and while the studio’s flagship Call of Duty Mobile has been handled by Tencent subsidiary TiMi Studios, King has also begun working on licensed properties. The mobile spin-off Crash Bandicoot: On the Run! released in March 2021, following on the franchise’s revival in Crash Bandicoot 4: It’s About Time.

The success of these two recently acquired studios are not isolated cases. A Statista report from November 2021 found smartphone games accounted for almost 50 percent of all video game revenue worldwide in 2020, with that slice of the industry expected to surpass $100 billion in revenue by 2030. Eight mobile games surpassed $1 billion dollars in player spending globally last year, according to mobile market analyst Sensor Tower: PUBG Mobile, Honor of Kings, Genshin Impact, Roblox, Coin Master, Pokemon GO, Candy Crush Saga, and Garena Free Fire.

While TiMi Studios’ MOBA Honor of Kings received $2.8 billion last year despite only being available in China, Genshin Impact is an interesting case of a Chinese game breaking out worldwide. Developed by miHoYo, Genshin Impact was viewed as a Legend of Zelda: Breath of the Wild clone upon its initial announcement due to their similar art direction and mechanics. Yet Genshin became a phenomenon of a gacha game, partially thanks to the entire experience being available on mobile as well as PC and PlayStation. After being downloaded more than 17 million times on mobile in its first four days, Genshin Impact became the fastest mobile game to make $1 billion last year, beating out Niantic’s Pokemon GO by at least three months.

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Niantic’s ongoing success with Pokemon GO since summer 2016 is more evidence of the industry moving toward mobile development. Though it is one of the biggest players out of Japan, Nintendo was slow to move into the mobile space on account of its work developing handheld consoles from the Game Boy to the 3DS. The AR game based on Game Freak’s Pokemon franchise opened the door for more to follow, including another Niantic game called Pikmin Bloom; Intelligent Systems’ Fire Emblem Heroes; DeNA’s Pokemon Masters EX; and in-house Nintendo games like Super Mario Run, Mario Kart Tour, and Animal Crossing: Pocket Camp. Plenty more iconic gaming franchises have dipped their toes in mobile with titles like Yu-Gi-Oh! Duel Links and Teppen, based on Capcom properties.

AAA Mobile Games May Be the Future for Take-Two, Xbox

While it’s unlikely the traditional PC and console game market will disappear anytime soon, there are plenty of incentives for companies like Take-Two Interactive and Xbox to broach the mobile scene with their biggest franchises. The PlayStation 5 and Xbox Series X are powerful pieces of hardware, but also notoriously difficult to get due to ongoing part shortages. Almost everyone has a smartphone in their pocket at all times, and titles like Genshin Impact show there are fewer limitations for developers than in the age of Angry Birds and Cut the Rope.

Take-Two has specifically mentioned its interest in bringing franchises like BioShock to mobile markets, but the concept has already been explored by Microsoft long before its announced acquisition of Activision Blizzard. Through cloud gaming, Xbox Game Pass Ultimate subscribers can download titles to play on the go via compatible mobile devices. Many of these experiences aren’t built with mobile in mind, but the Xbox brand has also toyed with this in games like 343 Industries’ twin-stick shooter Halo: Spartan Assault.

With Zynga and King, respectively, Take-Two and Xbox have more inroads to dedicated mobile games for some of their biggest series. Today’s acquisition announcement may be dominated by conversations surrounding games like Call of Duty or World of Warcraft, but given how huge the mobile space has become, it’s worth keeping that potential in mind. The industry will no doubt continue to evolve, and hopefully the workers pushing those boundaries see better treatment along the way.

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Sources: Statista, Sensor Tower