- The most recent layoffs are reportedly a response to “shifting priorities” and the need to manage the lifecycle and performance of games.
- Despite the layoffs, both Call of Duty Warzone: Mobile and Warcraft Rumble will continue to operate.
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It has been reported that Microsoft’s latest wave of layoffs has affected the teams working on Call of Duty Warzone: Mobile and Warcraft Rumble.
According to a source cited by Game File, these job cuts are not directly linked to Microsoft’s acquisition of Activision Blizzard, but rather a response to changing business priorities. Both games are expected to remain active.
The layoffs primarily affected corporate and support positions at Activision Blizzard.
Reorganization
Microsoft Gaming CEO Phil Spencer announced a reduction of approximately 650 positions as part of a restructuring to align its team structure post-acquisition. Spencer reassured employees that no games, devices, or experiences would be canceled, and no studios would be shut down as a result of these changes.
The source indicated that the layoffs were part of an effort to manage the lifecycle and performance of games, as per Spencer’s direction.
Although Microsoft’s acquisition of Activision Blizzard highlighted mobile gaming as a core focus, with the inclusion of King – the maker of Candy Crush – in its portfolio, Call of Duty Warzone: Mobile has not achieved the same level of success as its predecessor.
Since its launch, Warzone Mobile has generated $17.1 million in revenue in nearly six months. In comparison, Call of Duty: Mobile amassed $176.4 million in gross revenue during a similar launch period – over 10 times more, according to data from AppMagic.
Blizzard Entertainment’s Warcraft Rumble tower defense title, released in November, has brought in $60.8 million in revenue to date.
Microsoft’s recent round of layoffs follows a previous cut of 1,900 employees earlier this year. Despite assurances to the Federal Trade Commission that the merged companies would maintain the status quo, the tech giant continues its restructuring efforts.
