Microsoft interested in more M&A, Spencer says

Microsoft still has an eye on potential games-related acquisitions, particularly in mobile or in places that could add "geographic diversity" to Xbox's portfolio.

That's according to a Phil Spencer interview with Bloomberg, with the Microsoft Gaming boss adding: "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."

He reportedly added that there aren't any "imminent" deals though, and that large companies are likely not what the firm would be targeting as it's still in transition following the ABK acquisition.

Spencer also said that Microsoft is in particular interested in China, especially following its successful launch of Age of Empires Mobile in partnership with Tencent.

"It's been a good area for us to learn from creative teams that have real unique capability," he said. "The real opportunity is to partner with creative teams in China for global."

Still on the topic of mobile, Spencer said he's feeling "pretty good about where this industry is going," adding: "To reach new players, we need to be creative and adaptive of new business models, new devices, new ways of access. We're not going to grow the market with $1,000 consoles."

He added that Xbox's mobile storefront, which was due to launch this summer, has been delayed to an unspecified date as the company further researches the market.

Spencer also shared that Microsoft is looking at handheld and working on hardware prototypes on that front, though anything more concrete is "a few years out" for Xbox.

He touched upon the topic of Xbox games on Sony and Nintendo's platforms as well, saying we should expect Microsoft to do more cross-platform launches of its IP going forward.

"I do not see sort of red lines in our portfolio that say 'thou must not'," he told Bloomberg.

Microsoft recently released its financial results for Q1 of its fiscal year 2025, showing strong growth over its gaming segments following the Activision acquisition, though Xbox hardware revenue is down.