Microsoft and Activision Reportedly Form New Team for Smaller AA Games at Blizzard

Microsoft and Activision have reportedly formed a new development team within Blizzard Entertainment focused on creating smaller, AA games. This initiative aims to revitalize existing Blizzard franchises like Overwatch, Warcraft, and StarCraft. The team mainly comprises former King employees, the developers behind Candy Crush.

The new team is part of a broader strategy to produce more manageable, smaller-scale games. This move comes as the industry faces concerns over rising AAA game budgets and extended development timelines. Microsoft is fostering deeper collaboration between its studios, similar to Nintendo’s approach.

Reviving Classic Blizzard IPs

Blizzard has a rich history of popular franchises that have been inactive for some time. This new team aims to bring these beloved IPs back into the spotlight with fresh, smaller games. While there is speculation that these games might target mobile audiences due to the King employees’ background, Microsoft’s platform-agnostic strategy suggests they won’t be mobile-exclusive.

Satya Nadella, Microsoft’s CEO, recently highlighted the importance of this collaborative effort. This initiative aligns with Microsoft’s plan to encourage smaller game development projects across its studios. The integration of Activision and Blizzard titles into Xbox Game Pass, starting with Diablo IV, reflects this strategy’s broader context.