Microsoft and Activision Team Up for Smaller-Scale Games

Microsoft and Activision have formed a new team within Blizzard, primarily composed of King employees, to develop AA-tier games based on existing franchises. This follows Microsoft's 2023 acquisition of Activision Blizzard, granting access to a vast library of IPs. This strategic move aims to leverage King's mobile game expertise to expand Microsoft's presence in the mobile gaming market.

King's Mobile Game Expertise Takes Center Stage

The new team will focus on creating AA games – smaller in scope and budget than AAA titles – likely for mobile platforms. King's successful track record with mobile hits like Candy Crush and Farm Heroes makes this a logical direction. While King's past experience includes Crash Bandicoot: On the Run! (since discontinued) and an unconfirmed Call of Duty mobile project, this new initiative represents a significant commitment to mobile gaming.

Microsoft's Mobile Ambitions

Microsoft's commitment to mobile gaming is clear. Phil Spencer, CEO of Microsoft Gaming, highlighted mobile's crucial role in Xbox's growth strategy, emphasizing that the Activision Blizzard King acquisition was driven by this mobile capability. Microsoft is also developing its own mobile app store to compete with Apple and Google, expected to launch sooner rather than later.

A New Approach to Game Development

The rising costs of AAA game development have prompted Microsoft to explore alternative models. By utilizing smaller, specialized teams within its larger structure, Microsoft aims to experiment with more streamlined production processes. Speculation points toward potential mobile adaptations of popular franchises like World of Warcraft or Overwatch, mirroring successful mobile counterparts like Wild Rift and Apex Legends Mobile.

This new venture marks a significant shift in Microsoft's gaming strategy, focusing on expanding its reach into the lucrative mobile market while innovating its game development approach. The specifics remain shrouded in secrecy, but the potential for exciting new mobile titles is undeniable.