Microsoft Activision Aims to Make AA Games of AAA IPs

Microsoft and Activision have formed a new team within Blizzard, focusing on developing smaller-scale, AA titles based on established franchises. This initiative represents a strategic shift for the combined entity.

Microsoft and Activision's Focus on 'AA' Games

King Employees Powering Smaller Blizzard Titles

According to Windows Central's Jez Corden, a new Blizzard team, primarily composed of King employees, is dedicated to developing AA games leveraging existing Blizzard IPs. This follows Microsoft's 2023 acquisition of Activision Blizzard, granting access to a wealth of popular franchises such as Diablo and World of Warcraft.

The goal is to create AA titles—smaller in scope and budget than AAA releases. Given King's mobile gaming expertise with titles like Candy Crush and Farm Heroes, the new team's focus is likely on mobile platforms. King's previous experience includes Crash Bandicoot: On the Run! (since discontinued) and a previously announced, but currently unclear, Call of Duty mobile project (separate from the existing Call of Duty: Mobile).

Microsoft's Strategy: Strengthening Mobile Presence

At Gamescom 2023, Xbox's Phil Spencer highlighted mobile gaming's crucial role in Xbox's growth strategy, citing mobile capabilities as the driving force behind the Activision Blizzard King acquisition. He emphasized that the acquisition wasn't about bringing existing franchises like Call of Duty and Diablo to new platforms, but about gaining mobile development expertise and expanding into the largest gaming market.

Microsoft is actively developing its own mobile store to compete with Apple and Google. While details are scarce, Spencer hinted at a launch timeframe sooner than "multiple years away" at CCXP 2023.

The rising costs of AAA game development are prompting Microsoft to explore alternative approaches. This new team, according to Jez Corden, is part of a broader experiment with smaller, more agile teams within the larger structure.

While details are limited, speculation abounds regarding the team's projects. Possible candidates include scaled-down mobile versions of franchises like World of Warcraft (similar to League of Legends: Wild Rift) or a mobile Overwatch experience comparable to Apex Legends Mobile or Call of Duty: Mobile.