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Microsoft Activision Aims to Make AA Games of AAA IPs

by Zoey Jan 19,2025

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 focus on developing smaller-scale, AA titles based on established franchises. This strategic move follows Microsoft's acquisition of Activision Blizzard in 2023, granting them access to a vast portfolio of renowned IPs such as Diablo and World of Warcraft.

Microsoft Activision Aims to Make AA Games of AAA IPs

King's Expertise in Mobile Gaming

The new team's mandate is to create AA games, characterized by smaller budgets and scope than AAA releases. Given King's proven success with mobile hits like Candy Crush and Farm Heroes, it's anticipated that these new titles will be primarily mobile-focused. King's past experience developing mobile games based on existing IPs, such as the now-discontinued Crash Bandicoot: On the Run!, lends credence to this prediction. The status of their previously announced Call of Duty mobile game remains uncertain.

Microsoft Activision Aims to Make AA Games of AAA IPs

Microsoft's Mobile Gaming Ambitions

At Gamescom 2023, Microsoft Gaming CEO Phil Spencer highlighted the crucial role of mobile gaming in Xbox's future growth. He underscored mobile capabilities as the key driver behind the Activision Blizzard King acquisition. Spencer clarified that the acquisition wasn't about bringing new games to Xbox players, but rather about gaining a foothold in the mobile market—the largest gaming platform.

Microsoft Activision Aims to Make AA Games of AAA IPs

To solidify its mobile presence, Microsoft is actively developing its own mobile store to compete with Apple and Google. While specifics are scarce, Spencer hinted at a relatively near release timeframe at CCXP 2023.

Microsoft Activision Aims to Make AA Games of AAA IPs

A New Approach to Game Development

The rising costs of AAA game development have prompted Microsoft to explore alternative strategies. By forming smaller, specialized teams within its larger structure, Microsoft aims to experiment with a more efficient and cost-effective approach.

The creation of this new team has sparked considerable speculation among fans. Potential projects could include scaled-down versions of popular franchises like World of Warcraft, mirroring the success of League of Legends: Wild Rift, or mobile adaptations of Overwatch, similar to Apex Legends Mobile or Call of Duty: Mobile.