World of Warcraft, Overwatch, and Diablo fans have been curious what Xbox's plans might be for Blizzard, acquired as part of the Activision deal a few years ago.
Blizzard has been on a tear over the last year, and is arguably one of Microsoft's biggest and brightest spots in an otherwise incredibly challenging environment. Overwatch has resurged, World of Warcraft just had a successful expansion launch, and Diablo 4 delivered its highest-rated launch in years with its Lord of Hatred DLC. BlizzCon is just around the corner, where fans are expecting news on the long-rumored StarCraft shooter as well.
Microsoft announced today that it's cutting over 6,000 roles across its business, with 3,200 being reduced at Xbox alone. So far, it seems like ZeniMax has borne the brunt of the reductions, although other studios like Obsidian have also seen huge cutbacks. Microsoft has divested a further four studios, with another one pending. Xbox's platform team has seen losses across engineering and sales, although Xbox hardware development has emerged largely unscathed.
What might Xbox have in store for Blizzard?
Xbox CEO Asha Sharma previously noted an intent to focus on Microsoft's biggest gaming franchises, such as Halo, and Fallout. Given that Blizzard's franchises are quite easily among the biggest and most profitable in Microsoft's portfolio, I would suggest maintaining Blizzard is well within the purview of this new structure.
In a note to staff today, our sources shared this email from Blizzard President Johanna Faries, which suggested that more information will come down the line.
Blizzard, Asha shared updates regarding a planned reset across XBOX, with many colleagues across the division being impacted. While you can expect to hear more details regarding the day's events and what they mean for Blizzard in further communications, for now I simply want to acknowledge that today is a difficult day that impacts many people in a range of ways. Please take care of yourself and others in this moment as best as possible. In light of today's news I want to thank everyone across Blizzard for moving with focus and creativity behind our strategic priorities, supporting our myriad communities and each other throughout. We continue to build upon that very strong foundation. Thank you for your continued collaboration in these highly dynamic times.
— Blizzard President, Johanna Faries
I'm told there are no plans to cancel BlizzCon for example. I'm also told that Blizzard franchises have a range of transmedia TV and film projects that also fit within Asha Sharma's current model for Xbox's future.
Sources suggest to me that Blizzard saw comparatively minimal reductions as part of today's big "Xbox reset" cuts, although it's unclear what might happen in the near to midterm future. Microsoft signalled that some of its reductions would take place throughout the rest of the year, following this initial 1,500 tranche (which includes the studio divestitures).
Internally, many are criticizing the structure of these layoffs. Since now, many will be forced to spend the weeks and months ahead wondering if they'll still have a job when all this is said and done. That's not exactly the best environment to be working in, to put it lightly.
We'll be sure to keep you updated you on Microsoft's plans for Blizzard, positive or negative, as we learn more.
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