Microsoft has been actively enhancing its services and programs through strategic partnerships with various brands. A notable example is its five-year collaboration with The Coca-Cola Company.
Recently, Microsoft also announced an official partnership with Activision. The goal of this alliance is to develop ‘AA’ video games, which are smaller in scale and linked to existing franchises. This initiative is surprising but makes a lot of sense strategically. Here are the details:
Microsoft and Activision alliance will allow for the creation of smaller ‘AA’ titles
In 2023, Microsoft made headlines by acquiring Activision-Blizzard for $72 billion, bringing iconic franchises like Call of Duty and World of Warcraft, as well as mobile hits like Candy Crush Saga, under its umbrella. This acquisition significantly boosted Xbox’s growth and expanded its portfolio.
According to Windows Central, Microsoft and Activision have since established a new team at Blizzard, composed of employees from King, the developer behind Candy Crush Saga. Blizzard is renowned for franchises such as Overwatch, StarCraft, Diablo, and Warcraft.
The new Blizzard team has been tasked with developing smaller ‘AA’ titles connected to existing franchises. Given King’s expertise in mobile games, it’s possible that many of these new games will target the iOS and Android platforms, though this remains speculative.
The video game industry has heavily focused on ‘AAA’ titles in recent years, often leading to repetitive content, reliance on familiar structures and narratives, and a significant emphasis on cinematic stories to ensure high revenue, given the high production costs.
In contrast, the creation of ‘AA’ games by this new Blizzard team aims to produce smaller, more agile titles that can be developed and monetized more quickly, reducing company costs. These games will primarily expand on existing franchises, which already have established fan bases, making them a safer investment compared to launching entirely new IPs.
‘AA’ games are distinct from ‘AAA’ titles due to their smaller budgets. They offer substantial experiences without the financial greed often associated with larger titles, reflected in their lower purchase prices.
Additionally, The Verge reported that Xbox has moved into a new building at its Redmond headquarters to enhance collaboration and communication on its projects, signaling a commitment to improving its development processes.
