Microsoft is still in the market for video game acquisitions, Xbox lead Phil Spencer says — and he wants to partner more in China

What you need to know

• Microsoft Gaming CEO Phil Spencer spoke with Bloomberg regarding the Xbox business, sharing details on a number of topics.
• Spencer says that Microsoft is keeping an eye on video game acquisitions that can "add to what we're trying to do" but that there's nothing "imminent" to expect.
• Spencer also noted that in order to further Microsoft's global gaming reach, Xbox will continue to partner with teams in China.
• While companies spent billions on acquisitions during the pandemic, 2023 and 2024 have seen mass studio closures and layoffs.

One of the biggest gaming companies in the world isn't done with acquisitions.

In an interview with Bloomberg, Microsoft Gaming CEO Phil Spencer noted that Microsoft is keeping options open to acquire additional gaming companies. Microsoft made numerous gaming purchases in something of a spree beginning in 2018, notably buying Bethesda parent company ZeniMax Media for $8.1 billion and then Activision Blizzard King for $72 billion.

“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 explained, though he added that there's nothing "imminent" and that Microsoft will likely stay away from big deals for now.

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While Microsoft (and numerous other companies) bought big during the pandemic, 2023 and especially 2024 have seen studio closures and waves of layoffs. At Microsoft Gaming, this has meant laying off 2,500 employees and closing three studios.

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Microsoft looks to China for future partnerships

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Outside of future acquisitions, Microsoft is also looking to team up with studios in China, with Spencer saying that “The real opportunity is to partner with creative teams in China for global.”

After finalizing its acquisition of Activision Blizzard, Microsoft signed a partnership with Chinese gaming publisher NetEase, bringing Blizzard Entertainment's games back to China starting with Overwatch 2 and World of Warcraft, as well as exploring bringing some NetEase titles to Xbox consoles.

Xbox Game Studios and World's Edge also partnered with Chinese gaming powerhouse Tencent on Age of Empires Mobile, which launched in October 2024.

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It'll be interesting to see which titles Microsoft continues to partner with Chinese publishers on in order to try and increase the reach of its gaming brands.

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