Microsoft is in the midst of letting go of 1,900 employees from Activision Blizzard and Xbox, adding to the wave of redundancies that has hit the gaming industry hard since the start of 2024. This tough year lies ahead, and for 1,900 Activision Blizzard and Xbox employees, the struggles have already begun.
In an internal memo obtained by The Verge, Phil Spencer and Xbox’s Matt Booty broke the news to employees, calling it a ‘painful decision’. This comes just months after Microsoft’s record-breaking acquisition of Activision Blizzard. More developments are expected, including a high-level departure from Blizzard and the cancellation of a major game.
When It Rains…
As the news of over 1,900 layoffs spread from AB and Xbox, it was revealed that Blizzard’s long-time President, Mike Ybarra, is stepping down with immediate effect. Ybarra shared the news on Twitter, stating, ‘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.’
Furthermore, it was disclosed that an unannounced survival game in development at Activision Blizzard had been canceled. This was a significant blow given the popularity of survival games. Xbox’s Matt Booty announced that the employees working on this project will be reassigned to other games within Activision Blizzard.
Despite the dire news, it’s indicative of an industry in need of stabilization. More studio closures and organizational changes are expected this year, but there are hopes that, with time, the industry will find its footing once again.
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