Microsoft to Expand AAA IP Reach with AA Games

Microsoft and Activision Blizzard's New Team Targets AA Mobile Games

Microsoft and Activision have established a new team within Blizzard, primarily composed of King employees, to develop smaller-scale, AA games based on existing franchises. This strategic move, following Microsoft's acquisition of Activision Blizzard, leverages King's mobile game expertise and Blizzard's extensive IP portfolio.

King's Mobile Game Expertise

This new initiative builds upon King's proven track record in mobile gaming, with successes like Candy Crush and Farm Heroes. The team's focus is expected to be on mobile platforms, potentially creating AA titles based on popular franchises like Diablo or World of Warcraft. Past King projects, such as Crash Bandicoot: On the Run! (since discontinued) and the planned (but currently unclear) Call of Duty mobile game, offer insight into this approach.

Microsoft's Mobile Gaming Strategy

Microsoft's commitment to expanding its mobile gaming presence is evident. Phil Spencer, CEO of Microsoft Gaming, highlighted the importance of mobile in Xbox's growth strategy, emphasizing that mobile capabilities were a key factor in the Activision Blizzard acquisition. This aligns with Microsoft's broader ambitions to establish a significant presence in the mobile gaming market, a platform they previously lacked. This includes developing their own mobile game store to compete with Apple and Google.

Addressing AAA Development Costs

The formation of this new team also reflects a response to the rising costs associated with AAA game development. By creating smaller, more agile teams, Microsoft aims to experiment with a different development model, potentially mitigating these increasing expenses.

Speculation and Potential Projects

The exact nature of the new team's projects remains undisclosed, but speculation centers around mobile adaptations of existing franchises. Potential candidates include scaled-down versions of popular titles, mirroring successful mobile ports like League of Legends: Wild Rift or Apex Legends Mobile.

The creation of this new team marks a significant step for Microsoft and Activision Blizzard, signaling a strategic shift towards mobile gaming and a more diverse approach to game development.