Microsoft Activision Aims to Make AA Games of AAA IPs

Microsoft and Activision have joined forces to create a new team within Blizzard, dedicated to developing smaller-scale, AA titles based on their extensive catalog of popular franchises. This strategic move aims to leverage existing IPs in new and innovative ways.

Microsoft and Activision Focus on 'AA' Games

King Employees Power Smaller Blizzard Titles

According to Jez Corden of Windows Central, this new team, primarily composed of King employees, represents a significant shift in strategy following Microsoft's 2023 acquisition of Activision Blizzard. This acquisition granted Microsoft access to a treasure trove of beloved game franchises, including Diablo and World of Warcraft.

The team's primary focus will be developing AA games—projects with smaller budgets and scopes than their AAA counterparts—based on existing Blizzard universes. Given King's expertise in mobile gaming hits like Candy Crush and Farm Heroes, it's widely speculated that these new titles will primarily target the mobile market.

King's previous experience developing mobile games based on established IPs, such as Crash Bandicoot: On the Run! (since discontinued), and their announced (though currently unclear) plans for a Call of Duty mobile game, further supports this speculation. It's important to note that the existing Call of Duty: Mobile is developed by a separate team.

Microsoft Strengthens Mobile Presence

At Gamescom 2023, Phil Spencer, CEO of Microsoft Gaming, highlighted the crucial role of mobile gaming in Xbox's future growth, emphasizing it as a key driver behind the $68.7 billion Activision Blizzard King acquisition.

Spencer stated, "The reason we’re in the acquisition discussion with Activision Blizzard King is around their mobile capability because it’s just something we don’t have… We obviously already have Call of Duty on our platform; we already have Diablo on our platform. So it’s not about new games that Xbox players don’t have access to today. It is about a capability on mobile, and some broader ambitions that we have on the largest gaming platform, which is mobile phones."

This strategic focus extends to Microsoft's active development of a mobile store to compete with Apple and Google. While details remain scarce, Spencer hinted at a sooner-than-expected release at CCXP 2023, suggesting it wouldn't be "multiple years away."

In response to the escalating costs of AAA game development, Microsoft is exploring a more diversified approach. According to Jez Corden, the company is experimenting with smaller, more agile teams within its larger structure.

While specifics remain confidential, the creation of this new team has sparked considerable fan speculation. Potential projects could include scaled-down versions of popular franchises like World of Warcraft, similar to League of Legends: Wild Rift, or a mobile Overwatch experience akin to Apex Legends Mobile or Call of Duty: Mobile.