Microsoft CEO Phil Spencer has said that the company looked at acquiring Zynga, the mobile gaming company, before it ultimately decided to acquire Activision Blizzard in a deal worth $68.7 billion.
Spencer reportedly said that Microsoft had “quite a bit of time” working on a potential Zynga acquisition, but ultimately decided that it wanted to go “bigger” with its gaming ambitions. He said that Microsoft believes that Activision Blizzard “has the most iconic franchises in gaming” and that the company will be able to “accelerate the growth in mobile gaming” through the acquisition.
The news that Microsoft had considered acquiring Zynga comes as the company is facing increasing competition in the gaming industry from rivals like Sony and Tencent. The acquisition of Activision Blizzard would give Microsoft a major foothold in the console and PC gaming markets, but it would also give the company a significant presence in the mobile gaming market through Zynga’s popular titles like FarmVille and Words With Friends.
According to Spencer, who spoke on Friday, mobile games provide a faster possibility for growth than PC and console games, which account for the majority of Microsoft’s gaming income. Microsoft has made an attempt to increase the availability of cloud-based game streaming on mobile devices, but there are obstacles.
“A lot of respect for people at Zynga and what they built,” Spencer said at the hearing. “In the end, for our opportunity, we thought we needed to have something that was even bigger than what Zynga was, given our very small starting space in the mobile gaming business.”
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