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Microsoft Activision to Develop AA Games from Major IPs

Author : Chloe Oct 13,2025

Microsoft and Activision Plan to Develop Mid-Size Games from Major Franchises

Microsoft and Activision have formed a new internal team at Blizzard to create mid-sized (AA) games based on their existing intellectual properties. Continue reading to discover Microsoft's strategic objectives and possible projects from this development team.

Microsoft and Activision Shift Focus to Mid-Tier Game Development

King Staff to Drive Smaller-Scale Blizzard Projects

Microsoft Activision's New AA Game Development Strategy

Reports from Windows Central's Jez Corden indicate Microsoft and Activision have established a new Blizzard team primarily composed of King employees. This strategic move follows Microsoft's 2023 acquisition of Activision Blizzard, granting access to renowned franchises including Diablo and World of Warcraft.

Sources reveal this team's mission involves creating mid-budget (AA) titles derived from established Blizzard universes. With King's expertise in mobile gaming through hits like Candy Crush, industry analysts predict these projects will primarily target mobile platforms.

King previously demonstrated cross-platform adaptation with Crash Bandicoot: On the Run! (2021), though this runner-style mobile game was later discontinued. The company also announced a Call of Duty mobile project in 2017, though its current status remains uncertain alongside the existing Call of Duty: Mobile developed by a separate team.

Xbox Expands Into Mobile Gaming Market

Microsoft's Mobile Gaming Expansion Plans

Microsoft Gaming CEO Phil Spencer emphasized mobile gaming's critical role during Gamescom 2023, telling Eurogamer it was the primary motivation behind the $68.7 billion Activision Blizzard acquisition.

"Our interest in Activision Blizzard King stems from their mobile expertise - an area where we currently lack capabilities," Spencer explained. "While franchises like Call of Duty and Diablo already exist on our platforms, we recognize mobile phones as the world's dominant gaming platform where we must establish stronger presence."

Microsoft is concurrently developing a mobile storefront to compete with Apple and Google. Though details remain limited, Spencer hinted at CCXP 2023 that its launch would occur sooner than many anticipate.

Microsoft's Response to Rising Game Development Costs

Facing escalating AAA development expenses, Microsoft is testing alternative approaches. Insider reports suggest the company will empower smaller internal teams to create content more efficiently within its larger corporate structure.

While project specifics remain confidential, gaming communities speculate about potential adaptations. These could include mobile versions of World of Warcraft (similar to League of Legends: Wild Rift), or mobile interpretations of Overwatch comparable to Apex Legends Mobile and Call of Duty: Mobile.