Microsoft has announced a significant downsizing within its gaming division, affecting 1,900 jobs from Xbox, Activision Blizzard, and Bethesda teams out of the 22,000 employed there. This decision aligns with the leadership’s aim to realign the strategies of Microsoft Gaming and Activision Blizzard and build a sustainable cost structure as they continue to grow in the industry. Phil Spencer, the head of gaming at Xbox, communicated the decision, which comes three months after the addition of Activision, Blizzard, and King to Microsoft. Alongside the layoffs, it was also announced that Blizzard's previously revealed survival game has been cancelled, with its team reallocated to various promising new projects at Blizzard. This move underscores a trend of layoffs in the gaming industry, continuing into 2024 with companies such as Unity, Twitch, Riot Games, and several others announcing significant job cuts. This follows Microsoft's previous reduction of approximately 10,000 employees early last year, which also included members of the gaming division.
Which Blizzard survival game was cancelled due to the recent layoffs?The Blizzard survival game that was cancelled has not been named, but it was a new project in development that is now scrapped as the company reallocates resources to other promising projects.
Activision Blizzard, part of the layoffs at Microsoft, is notable for popular franchises such as "Call of Duty," "World of Warcraft," and "Overwatch." Its acquisition by Microsoft was a landmark deal in the gaming industry, aiming to bolster the Xbox gaming ecosystem with a vast library of popular games and intellectual properties. The cancelled Blizzard project mentioned in the announcement represents a shift in focus, as the company streamlines operations while reassessing its developmental pipeline.
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Comments
Tough break for the teams affected by the layoffs—it's a stark reminder that even colossal entities in the gaming world aren't immune to economic pressures. And as for the cancelled survival game, it's always a bit of a heartbreaker to see creative endeavors hit the cutting room floor, but I guess it's all part of the biz's ebb and flow, refocusing energy where it's most likely to pay off.
It's a tough scene in the gaming industry lately; Microsoft's move to trim its ranks—even among legacy teams like Xbox and Blizzard—shows a tightening of the belt, likely in response to the headwinds of a changing market. With the unnamed Blizzard survival game biting the dust, it's a stark reminder that not every gamble pays off, even when you've got heavy hitters like Activision Blizzard in your corner.