Microsoft Activision Aims to Make AA Games of AAA IPs

Microsoft and Activision Blizzard Team Up for Smaller-Scale Games

Microsoft and Activision have formed a new team within Blizzard, primarily composed of King employees, to develop smaller, AA-scale games based on existing franchises. This strategic move follows Microsoft's acquisition of Activision Blizzard in 2023, granting them access to a vast library of popular IPs.

Leveraging King's Mobile Expertise

The new team's focus will be on developing AA titles, which have smaller budgets and scopes than AAA releases. Given King's success with mobile games like Candy Crush and Farm Heroes, it's anticipated that these new games will primarily target the mobile market. King's past experience with IP-based mobile games, such as the now-discontinued Crash Bandicoot: On the Run!, provides a foundation for this endeavor. However, the status of a previously announced Call of Duty mobile game remains unclear.

Microsoft's Mobile Gaming Ambitions

Microsoft's acquisition of Activision Blizzard was largely driven by a desire to expand its mobile gaming presence, as highlighted by Phil Spencer, CEO of Microsoft Gaming, at Gamescom 2023. He emphasized the importance of mobile in Xbox's growth strategy, stating that it's not about adding new games to existing platforms, but about gaining a significant foothold in the mobile market. This strategy is further reinforced by Microsoft's development of a competing mobile app store.

A New Approach to Game Development

The rising costs of AAA game development are prompting Microsoft to explore alternative approaches, including utilizing smaller, more agile teams within its larger structure. While details are scarce, speculation abounds regarding potential projects. These could include mobile adaptations of existing franchises like World of Warcraft (similar to Wild Rift), or a mobile Overwatch experience in the style of Apex Legends Mobile or Call of Duty: Mobile.