Microsoft might soon pivot from cloud gaming to focus on handheld

Many believe that the Xbox-ABK deal is now virtually gone due to the historically tough nature of appealing UK CMA judgments

The goal of Microsoft's attempts to acquire ABK (for a cool $69 billion) is to penetrate the mobile games market, but authorities are becoming interested in how Microsoft intends to use cloud gaming if it acquires the rights to all of these extremely important assets. As a result, the merger was recently halted by the UK regulatory body known as the CMA. Many believe that the Xbox-ABK deal is now virtually gone due to the historically tough nature of appealing UK CMA judgments. But Microsoft and Activision are putting on a brave front in public, telling the media and staff members in internal communications that they intend to challenge the merger and ultimately succeed.

Understandably, Microsoft has often asserted that cloud gaming would be supplemental, but the disclosures in the CMA filings go a little bit farther. Xbox Cloud Gaming is constrained by a number of factors, such as ideal 5 GHz residential Wi-Fi, Apple and Google's restrictions on monetization and access, and the expense of hosting servers round-the-clock in Azure data centers. Microsoft is likely considering its options given that regulators do not want the company to purchase culturally significant games like Call of Duty, which might spur the growth of the cloud gaming business. Microsoft's own Roanne Sones, who oversees Xbox hardware, will be in person with ASUS at the ROG Ally reveal event and is most likely going to talk about how the company intends to improve the Windows 11 experience for mobile gaming devices.