Microsoft, Blizzard and King Reportedly Teaming Up for New Smaller ‘AA’ Games

Following the massive acquisition of Activision-Blizzard and King for over $69 billion, Microsoft is now setting its sights on a new venture.

According to Jez Corden of Windows Central, Microsoft and Activision have joined forces to create A NEW SMALLER TEAM within Blizzard.

This team, comprised of employees from KING (known for mobile games like Candy Crush Saga) and other talented individuals, has a specific mission: to develop “AA” games based on beloved Blizzard franchises like Overwatch, Warcraft, and StarCraft.

The news has come to light as many employees from Microsoft’s King subsidiary have updated their LinkedIn profiles in recent weeks to reflect this exciting new career direction.

Microsoft’s gaming division has already seen significant growth, reporting a 61% year-over-year increase, largely due to the integration of Activision-Blizzard across PC, consoles, and mobile platforms.

Given King’s expertise in mobile gaming, it’s possible that many of these new titles will be designed for mobile platforms. This aligns with Microsoft’s plans to launch its own mobile gaming store for iOS and Android.

However, a source from Window Central suggests that these games may not be restricted to mobile alone. Microsoft’s multiplatform approach across mobile, PC, and console means we could see these new titles available on multiple platforms.

What Are “AA” Games, and Why Are They Important?

“AA” games refer to titles developed by smaller teams with lower budgets compared to their “AAA” counterparts.

This approach allows for greater agility and innovation, often resulting in unique and popular games like Xbox’s own Sea of Thieves, Grounded, and even indie hits like Balatro and Palworld.

By focusing on “AA” games and cross-collaboration between studios, Microsoft and Blizzard aim to explore new possibilities while potentially reducing the skyrocketing costs associated with AAA game development.

This strategy also allows for more experimentation and the ability to quickly adapt to new trends in the gaming industry.

The past few years have been tough for the video gaming industry. Global economic slowdown, rising development costs, technology shifts, increasing demands from gamers, and the SAG-AFTRA strike over AI have all impacted the industry. Many developers are moving to smaller teams as a result.

This is why we are seeing many layoffs within the industry, with the Destiny 2 developer Bungie being the most recent example. The Embracer Group also split their company into three smaller parts to adapt.

Despite Palworld‘s success, its CEO remains cautious about expanding the team, emphasizing the benefits of staying small.

As the gaming landscape continues to evolve, Microsoft’s bold move could set a new standard for game development.

For more information, visit the official Window Central website. And remember to subscribe to GAMING FOODLE for more news!