Microsoft Activision Aims to Make AA Games of AAA IPs

Microsoft and Activision's New Venture: AA Games from AAA IPs

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

This new team's focus is on creating AA titles—games with smaller budgets and scope than AAA releases—leveraging King's mobile game expertise. Given King's success with mobile hits like Candy Crush, the expectation is 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!, further supports this assumption. However, the status of their 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 capabilities, as highlighted by Phil Spencer, CEO of Microsoft Gaming, at Gamescom 2023. He emphasized the significance of mobile gaming in Xbox's growth strategy, stating that mobile is the largest gaming platform.

This strategic move is complemented by Microsoft's development of a competing mobile app store to challenge Apple and Google. While details are scarce, Spencer hinted at a relatively near-term release at CCXP 2023.

Exploring a New Development Model

The rising costs associated with AAA game development have prompted Microsoft to explore alternative approaches. The formation of this smaller team within a larger structure reflects this shift.

Speculation about the team's projects includes mobile adaptations of popular franchises. Potential titles could include a World of Warcraft mobile experience similar to League of Legends: Wild Rift, or a mobile Overwatch title resembling Apex Legends Mobile or Call of Duty: Mobile. The possibilities are numerous, and fans eagerly await further announcements.