Microsoft Activision Targets AAA Game Transformation for AA Market

Microsoft and Activision's New Strategy: Leveraging Existing IPs for Smaller-Scale Mobile Games

Microsoft and Activision Blizzard have established a new team at Blizzard, focusing on developing AA titles based on established franchises. This article delves into Microsoft's objectives and potential projects for this new initiative.

King Employees Powering Blizzard's Mobile Push

According to Jez Corden of Windows Central, this newly formed Blizzard team is predominantly composed of King employees. Following Microsoft's 2023 acquisition of Activision Blizzard, this strategic move grants access to a wealth of popular game IPs, including Diablo and World of Warcraft.

The team's primary goal is to create AA games built upon existing Blizzard franchises. These AA titles will have smaller budgets and scopes than AAA releases. Given King's expertise in mobile gaming successes like Candy Crush and Farm Heroes, it's widely anticipated that these new games will be mobile-focused.

King's track record includes developing mobile games based on established IPs. While their 2021 title, Crash Bandicoot: On the Run!, has been discontinued, a Call of Duty mobile game was announced in 2017, though its current status remains uncertain, especially considering the existence of a separate Call of Duty: Mobile team.

Microsoft's Mobile Gaming Ambitions

At Gamescom 2023, Phil Spencer, CEO of Microsoft Gaming, highlighted the crucial role of mobile gaming in Xbox's growth strategy during an interview with Eurogamer. He emphasized that mobile capabilities were the primary motivator behind Microsoft's $68.7 billion acquisition of Activision Blizzard.

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 already have Call of Duty and Diablo on our platforms, but this is about mobile capabilities and broader ambitions on the largest gaming platform – mobile phones."

To bolster their mobile gaming presence, Microsoft is developing its own mobile store to compete with Apple and Google. While specifics are limited, Spencer hinted at CCXP 2023 that the launch would be sooner than "multiple years away."

A New Approach to Game Development

The rising costs of AAA game development are prompting Microsoft to explore alternative approaches. According to Jez Corden, the company is experimenting with smaller teams within its larger structure to adapt to this evolving landscape.

The creation of this new team has sparked fan speculation regarding potential projects. Possibilities include scaled-down versions of popular franchises like World of Warcraft, mirroring the success of League of Legends: Wild Rift. A mobile Overwatch experience, similar to Apex Legends Mobile or Call of Duty: Mobile, is also a strong contender.