The New Faction: Watts' Technocratic Empire

Core Members and Their Strengths:

Dr. Arthur Watts (The Mastermind): Watts is the undeniable leader. His genius in computer engineering, hacking, and security systems (snippets 1, 2, 12, 13) would be the backbone of this new empire. He's a master manipulator, capable of sowing chaos and turning existing infrastructure against the kingdoms. His personal vendetta against Ironwood and Pietro (snippets 11, 12) would likely evolve into a broader desire to prove his intellectual superiority by "remaking the world in his own image" (snippet 4).

Dr. Merlot (The Bio-Engineer): Merlot's obsession with Grimm biology and artificial intelligence (snippet 15) perfectly complements Watts' technological focus. He would be responsible for creating new, mutated, and potentially controllable Grimm, far more dangerous and specialized than anything Salem commanded. His "god complex" over perfecting Grimm would align with Watts' desire for ultimate control.

Fort Lee (The Enforcer & Ideologue): Fort Lee's scientific background, his ability to create combat drones, and his mastery of security systems (snippet 5) make him a valuable asset. Crucially, his extreme hatred of Faunus (snippet 5) provides a dangerous ideological component. Watts, being pragmatic, would likely leverage this prejudice to divide and conquer, using Fort Lee's "Shadow Trap" Semblance (snippet 6) and his drones for direct combat and subjugation.

Internal Dynamics:

While all three are arrogant and driven by a desire for control, their shared scientific bent and disdain for "lesser" minds (like Watts' view of Cinder, snippet 2) could foster a more cohesive, albeit still volatile, alliance than Salem's often bickering Inner Circle. Watts would undoubtedly be the primary strategist, with Merlot and Fort Lee acting as his chief engineers and enforcers, each pursuing their specialized interests under his direction.

Who Would Join Watts' Faction?

Excluding Cinder, as per your prompt, here's a breakdown of potential recruits and why:

Likely Recruits:

Gillian and Jax Asturias: These twins, obsessed with restoring the Vacuan monarchy and possessing "Aura Siphon" and "Mind Control" Semblances (snippet 9), would be prime targets. Watts could offer them the technological means and strategic guidance to achieve their "royal" ambitions, manipulating their desire for power and control. Jax's Mind Control would be invaluable for building an army or infiltrating enemy ranks.

Vermillion Raddock: As the leader of the Hana Guild and already associated with Salem, Vermillion (with his "Semblance Share" ability, snippet 7) was collecting magical artifacts for a master. Watts could present himself as a more capable and technologically advanced "master" who can truly unlock the potential of these artifacts and Vermillion's unique Semblance. His criminal network would be useful for resource acquisition and illicit operations.

Hanlon Fifestone: Having been manipulated by Bram Thornmane to use his "Raw Emotion" Semblance to attract Grimm (snippet 10), Fifestone is a proven pawn. Watts and Merlot would find his ability to extract emotions incredibly useful, potentially integrating it into their engineered Grimm or other psychological warfare tactics.

Team SMMK (Sil, Marton, Mina, Khaki): These corrupt Huntsmen (snippet 10) are self-serving and pragmatic. Watts could hire them for their combat skills and Marton's "Dust Nullification" Semblance (snippet 10), offering them wealth and power in exchange for their services.

Lil' Miss Malachite: A cunning gangster and information broker (snippet 10), Lil' Miss values information and loyalty. Watts' technological reach could provide her with unprecedented intelligence and new avenues for her criminal empire. She's adaptable and would align with the most powerful player.

Unlikely Recruits:

Tyrian Callows: His fanatic devotion was to Salem as a "goddess of destruction" (snippet 17). Watts' calculated, tech-based approach would likely bore or even disgust Tyrian, who revels in pure, unadulterated chaos and violence. Their personalities are fundamentally incompatible.

Hazel Rainart: Hazel's moral compass, however twisted by his grief, led him to defect from Salem when he learned her true destructive goals (snippet 18). Watts' ambition to "remake the world" through technological subjugation and engineered Grimm would likely still be too much for Hazel, who sought to prevent more "Gretchens" by ending the conflict, not escalating it with new horrors.

Mercury Black: While self-serving, Mercury's primary loyalty was to Cinder. Without her, he's adrift. While he might be tempted by power, he might also be wary of another controlling figure like Watts, especially given his abusive past. He's more of a follower than a leader.

Adam Taurus: Adam's motivations are deeply personal and rooted in vengeance against humanity and Blake. His methods are direct and violent, lacking the technological sophistication Watts values. Watts would likely view him as too unstable and uncontrollable.

Junior Xiong: A brutish crime lord (snippet 10), Junior lacks the strategic mind or specialized skills Watts would seek in a core member. He might be exploited for resources or muscle, but not as a true ally.

Remaking the World and Taking Over: The Watts Way

Watts' faction would aim for global dominance through a combination of technological supremacy, biological warfare, and psychological manipulation:

Technological Subjugation:

Infrastructure Control: Watts would systematically hack and control vital infrastructure across Remnant: communication networks (like the CCT), power grids (like Mantle's heating grid, snippet 13), and transportation systems. This would cripple kingdoms, cause widespread panic, and make them reliant on his "solutions."

Automated Armies: Leveraging his expertise with Atlesian Knights and his ability to turn technology against its creators (snippet 2), Watts would create vast armies of hacked robots and drones, potentially enhanced with Fort Lee's designs, making traditional Huntsman combat less effective.

Information Warfare: Watts would control the flow of information, spreading propaganda, framing enemies (as he did with Penny, snippet 2), and exploiting societal divisions to sow distrust and chaos.

Engineered Grimm and Bio-Weaponry:

Specialized Grimm: Merlot would develop new strains of Grimm, perhaps immune to Silver Eyes or capable of targeting specific Aura types. These wouldn't be mindless beasts but precision-engineered weapons. The concept of "artificial Grimm" (snippet 4) could be expanded, creating Grimm that are part-machine, part-creature, and fully controllable.

Grimm Control: Merlot's work would focus on direct control over Grimm, perhaps even integrating Fifestone's "Raw Emotion" Semblance to generate negative emotions that could power or direct Grimm.

Prosthetics and Enhancements: Watts and Merlot could offer advanced cybernetic enhancements and prosthetics to their loyal followers, creating super-soldiers loyal only to them.

Strategic Manipulation and Resource Control:

Exploiting Ambition: Watts would identify and exploit the ambitions of local leaders and criminal organizations, offering them power and resources in exchange for their allegiance or unwitting cooperation.

Resource Monopolization: They would seize control of Dust mines, advanced manufacturing facilities, and any "magical artifacts" (like the ones Vermillion sought) to fuel their technological and Grimm-based advancements.

Social Engineering: Watts' cunning would be used to turn populations against their leaders, creating internal conflicts that weaken the kingdoms from within, making them ripe for takeover.

Impact on Other Factions

Ozpin's Remnants (Team RWBY, Qrow, etc.): This new threat would be a stark contrast to Salem. Their traditional combat skills would be challenged by an enemy that fights with hacked systems, engineered bio-weapons, and psychological warfare. They would need to acquire new knowledge, perhaps even from former Atlas scientists or tech experts, to counter Watts' digital dominance. Their moral compass would be tested by the pragmatic and ruthless nature of Watts' faction.

The Kingdoms (Vale, Vacuo, Mistral):

Atlas: Having already suffered greatly from Watts' previous actions, Atlas would be a primary target for complete technological subjugation. Its advanced infrastructure would be its greatest weakness, easily turned against its citizens.

Mantle: Already a hotbed of discontent, Mantle would be further destabilized by Watts' manipulation of its systems and the deployment of engineered Grimm.

Vacuo: While more decentralized, the Asturias twins' presence could lead to internal power struggles, making it vulnerable to Watts' influence. Its vast resources could also be targeted.

Mistral: Its criminal underworld, already exposed to figures like Vermillion and Lil' Miss, could be consolidated under Watts' control, turning it into a hub for illicit operations and technological experimentation.

Remaining White Fang: Any remnants of the White Fang, especially those disillusioned with Adam's leadership, might find themselves caught between Watts' faction (which could offer them power and a new "order," albeit one based on human supremacy) and the remaining kingdoms. Fort Lee's anti-Faunus stance would be a significant barrier, potentially leading to the White Fang being used as disposable assets or targets.