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 aims to leverage existing IPs in new ways and explore different market segments.

Microsoft and Activision: A Focus on 'AA' Games

King's Expertise Fuels Smaller Blizzard Titles

According to Windows Central's Jez Corden, this new Blizzard team is largely comprised of King employees. Following Microsoft's 2023 acquisition of Activision Blizzard, this move strategically utilizes King's mobile game development expertise and the vast library of Blizzard IPs, including Diablo and World of Warcraft.

The team's goal is to create AA games, projects smaller in scope and budget than AAA titles. Given King's success with mobile hits like Candy Crush and Farm Heroes, it's anticipated that these new games will primarily target the mobile market. King's previous experience with IP adaptations, such as Crash Bandicoot: On the Run! (since discontinued), and their previously announced (but currently unclear) plans for a Call of Duty mobile game, provides a relevant foundation.

Microsoft's Mobile Ambitions

At Gamescom 2023, Microsoft Gaming CEO Phil Spencer highlighted the significance of mobile gaming in Xbox's growth strategy to Eurogamer. He emphasized that mobile capabilities were a key driver behind the $68.7 billion Activision Blizzard King acquisition. Spencer clarified that the acquisition wasn't about bringing new games to Xbox players but about gaining a strong foothold in the mobile market, the largest gaming platform.

Microsoft's commitment to mobile extends to the development of a competing mobile store to challenge Apple and Google. While details are scarce, Spencer hinted at a relatively near-term release at CCXP 2023, suggesting it won't be "multiple years away."

The rising costs of AAA game development are prompting Microsoft to explore alternative approaches. According to Jez Corden, the company is experimenting with smaller, more agile teams within its larger structure to adapt to this evolving landscape.

While specifics remain confidential, the new team's formation has sparked speculation about potential projects. These could include scaled-down versions of popular 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.