How King and Its Candy Crush IP Will Help Microsoft Boost Its Mobile Revenues

Microsoft is leveraging the proposed acquisition of Activision Blizzard to address its limited footprint in the mobile gaming sector. By integrating the King division, Microsoft aims to transform its mobile revenue profile, which accounted for only 0.3% of global mobile gaming revenue in 2021. Projections indicate that the inclusion of Activision Blizzard King’s portfolio would increase this share to over 4%, providing a significant strategic expansion into the mobile market.

The primary driver for this growth is the Candy Crush intellectual property. During the third quarter of 2022, King outperformed both the Activision and Blizzard segments, generating $692 million in revenue. This figure represented 74% of the total mobile revenue for the combined entity during that period. Furthermore, King contributed 240 million monthly active users to the company’s total base of 368 million, underscoring the developer's role as the cornerstone of the acquisition’s mobile strategy.

While the broader Activision Blizzard portfolio includes high-performing titles such as Call of Duty: Mobile and Diablo Immortal, these games rely on partnerships with external entities like Tencent and NetEase. Consequently, Microsoft views King as the most vital asset for achieving independent growth in mobile. These findings were presented as part of Microsoft’s defense against the Federal Trade Commission’s lawsuit, which seeks to block the $68.7 billion deal. Microsoft maintains that the acquisition is necessary to compete effectively against industry leaders like Sony and Nintendo, arguing that its current market position is insufficient to disrupt the competitive landscape of the gaming industry.