Among Microsoft’s 1,900 Mass Layoff, It Also Shelves Upcoming Blizzard Entertainment Fantasy RPG IP

Nearly three years following its inception, Microsoft was successful in its acquisition of Activision Blizzard King. In part of an established agreement with Microsoft Gaming, the Xbox firm arranged for then-CEO Bobby Kotick to depart from his role in late December. Looking forward, there was promises for prosperity with unionization being a leading factor looking ahead for the publisher conglomerate joining team Xbox.

However, nearly at the end of January Microsoft has laid off 1,900 employees – a large sum being of Activision Blizzard King – roughly cutting the Xbox division staffing by 8 percent. Reported by The Verge, this also squandered progress on the untitled fantasy RPG IP from Blizzard Entertainment which has now been shuttered entirely.

From IGN, the outlet has provided the memo issued by Microsoft Gaming CEO Phil Spencer. You can read it below:

It’s been a little over three months since the Activision, Blizzard, and King teams joined Microsoft. As we move forward in 2024, the leadership of Microsoft Gaming and Activision Blizzard is committed to aligning on a strategy and an execution plan with a sustainable cost structure that will support the whole of our growing business. Together, we’ve set priorities, identified areas of overlap, and ensured that we’re all aligned on the best opportunities for growth.

As part of this process, we have made the painful decision to reduce the size of our gaming workforce by approximately 1,900 roles out of the 22,000 people on our team. The Gaming Leadership Team and I are committed to navigating this process as thoughtfully as possible. The people who are directly impacted by these reductions have all played an important part in the success of Activision Blizzard, ZeniMax and the Xbox teams, and they should be proud of everything they’ve accomplished here. We are grateful for all of the creativity, passion and dedication they have brought to our games, our players and our colleagues. We will provide our full support to those who are impacted during the transition, including severance benefits informed by local employment laws. Those whose roles will be impacted will be notified, and we ask that you please treat your departing colleagues with the respect and compassion that is consistent with our values.

Looking ahead, we’ll continue to invest in areas that will grow our business and support our strategy of bringing more games to more players around the world. Although this is a difficult moment for our team, I’m as confident as ever in your ability to create and nurture the games, stories and worlds that bring players together.

Phil.

More on the new development with Xbox shaving its employment in its newest addition to its repertoire, it was also revealed that Blizzard Entertainment president Mike Ybarra & chief design officer Allen Adham are also to be departing as well. Previously, Ybarra ventured to Blizzard Entertainment following his two-decade campaign at Microsoft already prior to news of the purchase by Xbox.

On X, he writes: “I want to thank everyone who is impacted today for their meaningful contributions to their teams, to Blizzard, and to players’ lives. It’s an incredibly hard day and my energy and support will be focused on all those amazing individuals impacted – this is in no way a reflection on your amazing work. If there’s anything I can help with, connections, recommendations, etc., DM me.

“To the Blizzard community: I also want to let you all know today is my last day at Blizzard. Leading Blizzard through an incredible time and being part of the team, shaping it for the future ahead, was an absolute honor. Having already spent 20+ years at Microsoft and with the acquisition of Activision Blizzard behind us, it’s time for me to (once again) become Blizzard’s biggest fan from the outside.

“To the incredible teams at Blizzard – thank you. Words can’t express how I feel about all of you. You are amazing. Continue to do incredible things and always keep Blizzard blue and the player at the forefront of every decision.” This recent mass firing follows the recent Riot Games spree of layoffs as well. You can read the full report by heading here.

How surprised are you by the decision by Microsoft?