Microsoft's Activision: AAA IPs Get AA Game Treatment

Microsoft and Activision are collaborating on a new venture: a Blizzard-based team focused on developing AA-tier games leveraging established franchises. This initiative, fueled by King employees, aims to capitalize on the vast IP library acquired through Microsoft's 2023 Activision Blizzard acquisition.

This new team, according to Windows Central's Jez Corden, will concentrate on smaller-scale, lower-budget games compared to AAA titles. Given King's mobile gaming expertise (Candy Crush, Farm Heroes), the focus is likely to be on mobile platforms. King’s past experience includes the now-discontinued Crash Bandicoot: On the Run! and a previously announced (but currently unclear) Call of Duty mobile game.

Microsoft's strategic move is driven by a desire to bolster its mobile gaming presence. Phil Spencer, CEO of Microsoft Gaming, highlighted mobile gaming’s importance in Xbox's growth strategy during Gamescom 2023 and CCXP 2023 interviews, emphasizing the mobile capabilities as a key factor in the Activision Blizzard acquisition. Microsoft is also actively developing its own mobile game store to compete with Apple and Google.

The creation of this new team also reflects a broader strategy by Microsoft to address the rising costs of AAA game development. By employing smaller teams within a larger structure, Microsoft aims to experiment with a more cost-effective approach to game production.

Speculation surrounding the new team's projects includes mobile adaptations of existing 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. While details remain scarce, this initiative signals a significant shift in Microsoft's gaming strategy, focusing on expanding its reach into the mobile market.