The industry news is definitely bleak and the situation is not going to improve. Microsoft, in turn, announces a wave of layoffs and the cancellation of a game.
The video game industry is experiencing real carnage. Since last year, notices of dismissal have been increasing, almost all of which are shockingly violent. Riot Games announced just the day before yesterday that around 530 jobs, or 10% of its workforce, had been eliminated. The ravenous Embracer, which had an overflowing appetite for takeovers, is now spitting thousands into the wild. Black Forest Games, which works on the famous TMNT Last Ronin, is the latest company to pay the price for this disgusting policy; 50% of employees are affected. Now it’s Microsoft’s turn to make cuts to all Xbox studios, including the latest version: Activision-Blizzard.
1,900 jobs will be cut at Xbox
After months of struggle, Microsoft proudly announced its acquisition of Activision-Blizzard in October 2023. A historic acquisition worth almost $70 billion that will ultimately result in numerous layoffs a few months later. The Redmond company has announced internally that it will cut 1,900 jobs across its various studios, representing around 8% of the workforce in its gaming division. Activision Blizzard remains the hardest hit, but Xbox and ZeniMax employees will also bear the brunt of these budget cuts. In a memo sent to employees and received by The edge
Going forward, we will continue to invest in areas that grow our business and support our strategy to offer more games to more players around the world. Although this is a difficult time for our team, I have more confidence than ever in your ability to create and maintain the games, stories and worlds that bring players together.
– Phil Spencer in a memo sent to Xbox Studios employees
Blizzard game canceled
Seen in an email from BloombergRob Kostich, Head of Publishing at Activision, specifies that these cuts were necessary to “ We need to realign and focus our resources for the future “. Blizzard is also likely to be severely affected by these layoffs. Mike Ybarra, president for more than 20 years, has made the decision to leave the company, as has Allen Adham, one of the company’s founders. In an internal memo, Matt Booty points out from Xbox Studios that a new president will be elected next week. Jason Schreier reports that the survival game Odyssey, which has been in the works for over six years, was completely canceled. It would have been Blizzard’s first new license since Overwatch, it will ultimately be never see the light of day.
