Tag: microsoft

Both Microsoft and American Express are fighting to acquire equity in the company.

A number of technology news reports that were recently published have suggested that insiders who are close to this issue claim that American Express Co. and Microsoft are both showing interest in purchasing an equity stake in Foursquare Labs Inc.

If these reports are true, then it suggests that the two giants would rather invest in the company than work jointly on it.

Foursquare is a tremendously popular form of mobile check-in platform. At the same time that this technology news was being released, it was also in negotiations with venture capitalists in possession of convertible debt with regards to transforming their current “holdings into equity”. The discussions that are underway are also indicating that the prospective investors have become more bold about the potential of Foursquare, following the results that it has been achieving through its latest approach to advertising that gives brands the ability to target users at the time that they have checked into a specific location.

This technology news is clearly highly appealing to Microsoft and American Express, that each have their own plans for it.

From the side of Microsoft, the acquisition of Foursquare would provide the giant with the opportunity to develop a larger role in both mobile commerce as well as in the social media scene. On the other hand, it is believed that American Express is primarily interested in the check-in platform so that it will be able to boost its competitive edge with its credit card rivals through the use of enhanced marketing an improved loyalty programs that are furthered by the influence of social media.

Steven Rosenblatt, the chief revenue officer for Foursquare, released a technology news statement, recently, which said that “I think we’ve proven our business model.” He also went on to add that “Our business model is very clear and it’s working, doing what we thought it would do, if not more. It’s all well ahead of what we anticipated.” If the rumors are true about Microsoft and American Express, then clearly Rosenblatt is right.

Microsoft sees promise in mobile games

Mobile games have become a very prominent part of the game industry. Developers and publishers around the world are beginning to put a great deal of their focus on the mobile space, hopping to tap into a very active and lucrative market. While consoles remain a powerful force in the game industry, mobile games are beginning to establish a strong foothold among gamers, both casual and hardcore alike. For Microsoft, mobile platforms are beginning to represent a significant portion of the company’s revenue.

15% of revenue generated from mobile games

Microsoft has long been a formidable force in the game industry. Not only is the company responsible for the Windows operating system, which is the most popular platform for computer games, it is also responsible for the acclaimed Xbox consoles. Rumors suggest that Microsoft is planning to unveil its next generation Xbox in the coming weeks, but the console is not likely to derail the attraction of the mobile space, especially as the company reports that 15% of its revenue is coming from mobile games.

Microsoft likely to remain focused on consoles and PC

According to Microsoft, mobile games on smartphones and tablets generate some $10 billion annually for the company. The performance of mobile games has been enough to pull Microsoft’s attention further into the mobile space, but the company will not be abandoning its place in console gaming. The company still considers consoles to be the most lucrative market for games, especially as consoles represent 42% of the company’s revenue. PC revenue comes in at $12 billion, which is likely enough to keep Microsoft strongly focused on PC gaming as well.

Competition in mobile space is heating up

Microsoft plans to push forward with its mobile games. The company is expected to face significant competition from other game industry giants, like Sony and Nintendo, which are also showing interest in mobile games. Even small, independent development studios could begin competing with Microsoft due to the nature of mobile games and the favor that consumers show for developers.