Microsoft Activision Aims to Make AA Games of AAA IPs

Microsoft and Activision Team Up for Smaller-Scale Games

Microsoft and Activision have established a new team within Blizzard, primarily composed of King employees, to develop AA-tier games based on established franchises. This initiative follows Microsoft's 2023 acquisition of Activision Blizzard, granting access to a wealth of popular IPs.

This new venture aims to create games with smaller budgets and scopes than typical AAA titles. Given King's expertise in mobile gaming hits like Candy Crush, the expectation is that these new games will be mobile-focused. King's past experience developing mobile titles based on existing IPs, such as the now-discontinued Crash Bandicoot: On the Run!, supports this prediction. However, the status of a previously announced Call of Duty mobile game remains uncertain.

Microsoft's Mobile Strategy Takes Center Stage

Microsoft's commitment to mobile gaming is clear. At Gamescom 2023, Phil Spencer, CEO of Microsoft Gaming, highlighted mobile gaming as a key factor in Xbox's growth strategy, emphasizing that it was a primary driver behind the Activision Blizzard acquisition. He explained that the acquisition wasn't about bringing new games to existing Xbox players, but about gaining mobile development capabilities.

Further reinforcing this commitment, Microsoft is actively developing its own mobile app store to compete with Apple and Google. While specifics are limited, Spencer indicated at CCXP 2023 that the launch is closer than "multiple years away."

A New Approach to Game Development

The rising costs of AAA game development have prompted Microsoft to explore alternative approaches. The creation of this new team signals a move towards smaller, more agile teams within the larger structure.

While details remain scarce, speculation abounds regarding potential projects. These could include scaled-down mobile 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.