As reported by Windows Central, Microsoft has approved the formation of a new team inside Blizzard Entertainment to work on smaller AA quality games based on existing Blizzard franchises, including Warcraft, StarCraft, Overwatch, and more!
Full Story on Windows Central
Interestingly, while the new team falls under Blizzard Entertainment, it appears to be largely made up of employees from King and other Activision studios, likely leveraging their experience working on smaller and more mobile friendly games, though this does not necessarily mean whatever they produce will be mobile-only, as Microsoft is keen to explore a three-pronged approach across console, PC, and mobile devices.
Since BlizzCon 2018, Blizzard has maintained that there are more new products in development than ever before, and while we hear about the successes in Diablo Immortal and Warcraft Rumble, their ill-fated survival game was cancelled before ever seeing the light of day, and others will silently spin up and down without our ever hearing about them.