Is Xbox Changing Its Tune On The Activision Merger? Find Out What Xbox's Head Phil Spencer Says

During a recent interview, Phil Spencer, the top executive of Microsoft Corp (NASDAQ: MSFT)'s Xbox, made a significant announcement regarding the future of the gaming company.

Spencer stated that even if the company's proposed $68.7 billion in cash acquisition of the Call of Duty publisher, Activision Blizzard Inc (NASDAQ: ATVI), falls through due to extensive regulatory scrutiny and public opposition, Xbox will continue to operate.

“It’s not some linchpin to the long term — Xbox will exist if this deal doesn’t go through,” said Spencer to The Times.

The CEO of Microsoft Gaming also addressed the fact that regulators are “protecting” Sony Group Corp.'s (NYSE: SONY) PlayStation when it’s the dominant player in the console global market.

See Also: Sony Controls The Market, Microsoft Boss Says To Justify Activision Blizzard Deal

“Competition is us trying to get stronger. I don’t have great rationale for … how better competition in consoles is somehow hurtful for consumers. Because to me, having us, Sony, and Nintendo doing well in the console market — all of us with strengths and uniqueness and content and capabilities — gives consumers more choice," said Spencer.

"I’d hate to see consoles go to where phones are where there are only two manufacturers. And, right now, we have three good competitors.”

Spencer also assured the true motive behind the acquisition is to bolster Microsoft's presence in the mobile market and eventually challenge the dominance of tech giants Alphabet Inc. (NASDAQ: GOOGL)(NASDAQ: GOOGL)-owned Google and Apple Inc (NASDAQ: AAPL) in their respective mobile app stores.

“That’s the strategic angle for us. There was nothing about Call of Duty on PlayStation or Call of Duty not on PlayStation,” he said.

“We definitely get support from regulators when we talk about opening up mobile and being a credible third-party alternative on those devices — and we’re a long way from there today.”

Photo: Matthew Manuel en Unsplash