Activision forms new team to develop 'AA' spin-offs for its franchises

Valued at $69 billion, Activision has a wealth of untapped potential in its portfolio, as dynamo IPs like Diablo, Overwatch, and World of Warcraft have only ever scratched the surface.

Now, with the backing of new owners Microsoft, Activision appears to have finally decided that these IPs are ripe for expansion. According to new reports, Activision has opened a new studio with its sole focus being weighted on "AA" games based on existing franchises.

Activision Blizzard opens new AA studio for IP spin-offs

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Windows Central reports that a new Blizzard studio has been formed to make smaller games, as employees from King (the mobile studio behind Candy Crush and more) have changed their LinkedIn profiles to match the new job roles.

The studio will apparently be working on AA games, so not your massive releases like the next Diablo instalment, but rather spin-off games based on these IPs.

This has been a popular choice for publishers as of late, such as Riot Games, which expanded from its League of Legends IP to create upcoming games such as 2XKO and an unnamed MMO.

Activision Blizzard also has the likes of Spyro, Crash Bandicoot, Hearthstone, Guitar Hero, and Tony Hawk to play with, although Call of Duty will likely stay untouched.

Activision Blizzard could be set for a new wave of mobile titles

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On multiple occasions lately, Microsoft has revealed that it wants to push into the mobile gaming space with a new Xbox games store on iOS and Android.

Given that the bulk of this new studio is reportedly King employees, the new studio could be leaning into this mobile expansion by bringing Diablo, Overwatch, and more to mobile - not as 1:1 remasters, but rather using the IPs to create new games.

The Windows Central report also claims that Microsoft wants smaller teams to work on Nintendo-like titles, following party games' success over the last three years (Among Us, Fall Guys, Palworld etc.). 

Could we be gearing up to see Icarus and Widowmaker join forces in a mobile Minecraft world? As long as the project isn't like the new Game of Thrones: Legends title - which is a glorified Bejeweled experience with IP characters and voice lines added - we're excited to see where this new studio could take us.