A new AA studio has reportedly been created within Blizzard.
That's according to a report from Windows Central, which claims that Microsoft and Activision have reportedly “approved the creation of a new team” within Blizzard, comprised primarily of employees of mobile developer King.
Sources told the publication that the new studio will work on AA games “based on existing franchises within Blizzard's universes,” highlighting games like World of Warcraft, Overwatch, and StarCraft.
He suggested that since the studio is made up of former King employees, it may be working on games for the Xbox mobile store, which is set to launch later this year.
The report also notes that Microsoft is “eager to explore and experiment with finding access to smaller teams that are also embedded within the larger organization” as a way to reduce costs.
Microsoft acquired Activision Blizzard in October 2023 after the deal was first announced in January 2022.
Gaming Industry.biz has contacted Microsoft for further clarification.