Microsoft and Activision's New Strategy: Smaller Games, Bigger Reach
Microsoft and Activision have formed a new team at Blizzard, primarily composed of King employees, to focus on developing AA titles based on established franchises. This follows Microsoft's acquisition of Activision Blizzard in 2023, granting access to a wealth of popular IPs.
This initiative aims to leverage King's mobile game expertise to create smaller-scale, more budget-friendly games for mobile platforms. King's past experience with IP-based mobile games, such as Crash Bandicoot: On the Run! (now discontinued), and their announced (but currently unclear) plans for a Call of Duty mobile title, inform this strategy.
Microsoft's focus on mobile gaming is evident. Phil Spencer, CEO of Microsoft Gaming, highlighted mobile as a crucial element in Xbox's growth strategy, emphasizing that the Activision Blizzard acquisition was driven largely by King's mobile capabilities. This aligns with Microsoft's broader ambition to expand its presence in the mobile gaming market, including the development of a competing mobile app store.
The new team's formation also reflects a shift in response to rising AAA game development costs. By experimenting with smaller teams and AA titles, Microsoft seeks to explore alternative development models. Speculation abounds regarding potential projects, including mobile adaptations of franchises like World of Warcraft or Overwatch, drawing parallels to existing successful mobile titles.
This strategic move positions Microsoft to capitalize on the vast mobile gaming market while simultaneously addressing the challenges of escalating AAA development costs. The outcome of this new team's efforts remains to be seen, but it signifies a significant shift in Microsoft's gaming strategy.
