Microsoft establishes a new AA studio under Blizzard, according to a recent report

A fresh AA game development unit has reportedly been established within Blizzard.

As detailed by Windows Central, Microsoft and Activision are said to have sanctioned the formation of this new division. This team is predominantly composed of former King employees, known for their mobile game expertise.

Insiders cited in the report indicate that this new squad is set to develop AA titles "rooted in well-known Blizzard franchises" such as World of Warcraft, Overwatch, and StarCraft.

Given the background of the team members from King, speculation suggests they might develop games for Xbox's mobile store, which is slated to debut this year.

The report also highlighted Microsoft's interest in "experimenting with smaller integrated teams within their larger framework" to manage expenses more efficiently.

In October 2023, Microsoft completed the acquisition of Activision Blizzard, a move that was initially publicized in January 2022.

The publication GamesIndustry.biz has sought further comments from Microsoft.