Microsoft and Activision's New Strategy: Leveraging Existing IPs for Mobile Success
Microsoft and Activision have reportedly formed a new team within Blizzard, primarily composed of King employees, to develop smaller-scale, AA games based on established franchises. This follows Microsoft's 2023 acquisition of Activision Blizzard, granting access to a wealth of popular IPs such as Diablo and World of Warcraft.

This initiative aims to capitalize on King's mobile game expertise, creating AA titles for mobile platforms. King's past experience with IP-based mobile games, including the now-discontinued Crash Bandicoot: On the Run!, and their previously announced (though currently unclear) Call of Duty mobile project, suggests this new team's focus.

Microsoft's Mobile Ambitions
Microsoft's commitment to mobile gaming is evident. Phil Spencer, CEO of Microsoft Gaming, highlighted mobile as crucial to Xbox's growth strategy at Gamescom 2023, emphasizing that the Activision Blizzard acquisition was largely driven by King's mobile capabilities. This strategic move extends beyond existing Xbox titles to establish a significant presence in the mobile gaming market. Furthermore, Microsoft is actively developing its own mobile app store to compete with Apple and Google, a project expected to launch sooner than initially anticipated, as suggested at CCXP 2023.

Addressing the Rising Costs of AAA Development
The formation of this new team also reflects Microsoft's response to the escalating costs of AAA game development. By utilizing smaller teams within its larger structure, Microsoft aims to explore more efficient and cost-effective development models.

Speculation and Potential Projects
The new team's focus on AA titles based on existing franchises has sparked much fan speculation. Potential projects could include mobile adaptations of popular franchises like World of Warcraft (similar to League of Legends: Wild Rift), or a mobile Overwatch experience comparable to Apex Legends Mobile or Call of Duty: Mobile. The possibilities are numerous, and the future of this new initiative promises exciting developments.