Microsoft's Activision to Transform AAA IPs into AA Games

Microsoft and Activision have taken a strategic step forward by establishing a new team within Blizzard, primarily composed of King employees. This initiative follows Microsoft's 2023 acquisition of Activision Blizzard, which provided them access to a wealth of popular game IPs such as Diablo and World of Warcraft. The goal of this new team, as reported by Jez Corden of Windows Central, is to develop smaller-scale AA games based on existing Blizzard franchises. These AA titles are intended to be less expansive and costly than their AAA counterparts. Given King's successful track record with mobile games like Candy Crush and Farm Heroes, there's a strong indication that this new team will focus on mobile platforms.

King's experience in developing mobile games from established IPs is noteworthy. They previously launched Crash Bandicoot: On the Run! in 2021, an endless runner similar to Temple Run, though it has since been discontinued. Additionally, plans for a Call of Duty mobile game were announced in 2017, although its current status remains uncertain, especially with the separate development of Call of Duty: Mobile.

Microsoft's emphasis on mobile gaming was highlighted by Phil Spencer, CEO of Microsoft Gaming, at Gamescom 2023. In an interview with Eurogamer, Spencer stressed the importance of mobile gaming for Xbox's growth strategy, citing it as a primary motivation for the $68.7 billion acquisition of Activision Blizzard. He 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 obviously already have Call of Duty on our platform; we already have Diablo on our platform. So it’s not about new games that Xbox players don’t have access to today. It is about a capability on mobile, and some broader ambitions that we have on the largest gaming platform, which is mobile phones."

To further enhance their mobile presence, Microsoft is working on a mobile store to compete with Apple and Google. Although specifics are yet to be revealed, Spencer hinted at CCXP 2023 that the launch of this store is imminent, rather than being "multiple years away."

In light of the rising costs associated with AAA game development, Microsoft is exploring innovative strategies. Jez Corden noted that the company plans to experiment with smaller teams within its larger framework to adapt to these changes. The formation of this new team has sparked fan speculation about potential projects. These could include scaled-down versions of popular franchises like World of Warcraft, similar to the mobile adaptation of League of Legends, Wildrift. Other possibilities include a mobile version of Overwatch, comparable to Apex Legends Mobile or Call of Duty: Mobile.