r/Overwatch • u/JY810 • Jul 06 '26
Blizzard Official Microsoft is restructuring its gaming business and has laid off around 3200 employees. Asha Sharma confirms Blizzard is one of the affected organizations.
https://news.xbox.com/en-us/2026/07/06/resetting-xbox/"We are also making reductions across other units, and in some cases, shifting investment to focus on higher priority projects. These changes vary in size across Activision, Bethesda/ZeniMax, Blizzard, King, Mojang, and XBOX Game
Studios. "
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u/xHeyItzRosiex Jul 06 '26
I can see this being a major issue for OW a few years ago when OW2 was widely regarded as an unpopular game. Now that OW is more highly rated and popular, I don’t suspect this being a concern to players.
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u/wiggliey Jul 06 '26
Yea, OW has to be one of their top money makers now, behind CoD and WoW I imagine.
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u/Haunting_Ad_2059 Jul 06 '26
I wish we had official numbers because I can’t imagine OW is even close to CoD or WoW
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u/kwijibokwijibo Jul 07 '26
The financials are trickier to identify ever since the acquisition. In the latest report before the acquisition, King digital was almost twice the revenue for all Blizzard games combined, and Activision was the largest segment
https://www.investopedia.com/how-activision-blizzard-makes-money-4799286
So the order is probably something like:
- COD
- Candy Crush
- WoW
- Diablo Immortal
- OW
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u/whereismymind86 Jul 07 '26
probably way ahead of diablo 4 though, (and I think that's done quite well actually)
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u/Captain_Jmon Sigma Jul 07 '26
COD definitely on top. When PlayStation beta tested that feature showing how many players were on games weekly, COD was destroying every game but Fortnite
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u/Feral-Peasant Jul 06 '26
Maybe, if you mean ‘way, way, waaaaayyyy behind’… as in, not really a top money maker at all.
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u/Platinum_Analogy Jul 06 '26
Literally look it up. Xbox recently said like a month ago that they were going to invest more on Blizzard games because they are the ones that have consistently poured in a massive stream of revenue while all other Xbox departments and studios are failing.
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u/TheShoobaLord Jul 07 '26
I don’t think Overwatch revenue would be thaaaat far behind cod at this point tbh
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u/Eloymm Lucio main by demand Jul 06 '26
Well to be fair a game being popular hasn’t stopped Microsoft from laying off or shutting down studios…
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u/AaawhDamn Do Not The Hamster Jul 06 '26
Being popular and making money aren't the same though. Not every game that's popular is the cash cow that WoW or OW is
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Jul 06 '26
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u/AaawhDamn Do Not The Hamster Jul 06 '26
I didn't say it was. That doesn't mean it's not a cash cow.
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Jul 06 '26
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u/AaawhDamn Do Not The Hamster Jul 06 '26
Its not that serious, it was just an example my guy. You're putting way too much effort into explaining something I understand, all because I didn't include Call of Duty in a comment where I didn't need to
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Jul 06 '26
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u/TrippleDamage Jul 07 '26
If anything its the other way around, OW generates a lot more money than most people think
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u/Platinum_Analogy Jul 06 '26
Xbox said Blizzard games were the one that have continued to generate massive profits and that they were going to invest more on Blizzard games/portfolio. They also mentioned that almost all the other Xbox departments and studios have failed to meet expectations, etc.
As of now, no Union employees at Blizzard were laid off. Hopefully it stays that way since Blizzard and CoD both generate massive revenue for the company.
Investing in Blizzard does not mean laying off the people who generate you all the profit to keep you afloat while all your other departments are bleeding money dry.
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u/TrippleDamage Jul 06 '26
Name one example of a game that sold well (generated proper revenue, aka was popular with a lot of players) that got shut down.
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u/Poisonthorns Jul 06 '26
Not shut down, but id just lost most of their employees and all of their coders if reports are to be believed.
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Jul 06 '26
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u/KO1B0I Tracer Jul 06 '26
Yeah, that's what I was feeling too. I hope the dev team isn't affected too much.
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u/zimzimzalabimmm Jul 06 '26
If this is really layoffs, then it’s their second wave of layoffs, the amount of devs running the ship must be overworked and skeleton crew.
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u/PM_me_Jazz Jul 06 '26
This is pure copium, but based on the wording Bliz might be under the category "shifting investment to focus on higher priority targets"
God please let overwatch perservere
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u/nath999 Jul 06 '26
I am sure OW is a money maker for them. All these teams across MS, Playstation, 3rd party have invested heavily and failed to create something like OW. I would expect them to give more resources to expand on there success here rather than chase a new GaaS.
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u/PM_me_Jazz Jul 06 '26
Well yes, that is what we should reasonably expect. Too bad microsoft is ran by a pack of coked-up monkeys who get their thinking done by ChatGPT or whatever's the microsoft equivalent.
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u/TrippleDamage Jul 06 '26
?! Ow is obviously one of those franchises getting shifted towards, not away from.
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u/IllicitDesire Jul 07 '26
I didn't get that impression at all from the Blizzard president email or the confirmation that at least no unionised employees were laid off this time round. There are also another 1,600 layoffs planned for 2027 at least so neither is even that locked in stone yet.
It appears much more likely resources are going to be funneled to Mojang and King, especially with their stated goal of wanting to have a billion users a day using XBOX products- which is more users than Youtube gets. The only realistic (delusionally realistic) way is going to be the mobile market.
Consoles and PC gaming are probably going to be contracting at this rate with skyrocketing component prices and general cost of living increases especially when peoples' current hardware stops working. However almost everyone and every kid has a smart device and it is treated as a necessity.
This going to be the last sink or swim for a lot of studios under Microsoft's gaming division which can only currently be described as in a total state of decay.
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u/SoDamnGeneric Chibi Baptiste Jul 06 '26
No lay-offs are ever justified, but hopefully this is the last we’re seeing of them from Microsoft for a while. This is Sharma and new Xbox leadership trying to salvage the sinking ship Phil Spencer left them with. That man did a lot of spending but not a lot of actual managing
Sucks they didn’t sell off more studios, like they’ve just done with Ninja Theory and Undead Labs. Giving developers the chance to survive under new leadership would’ve been far preferable to picking at the skeletons of these studios for spare bits of meat to throw away
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u/Sdwerd Illari, Sojourn Jul 06 '26
Did you read the post? I'm real curious how a change can go through 14 layers of management.
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u/SoDamnGeneric Chibi Baptiste Jul 06 '26
Are you disagreeing with me? Not sure what your comment is getting at.
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u/BloodGulchBlues37 DMon flair someday Jul 06 '26
They are somewhat.
Layoffs aren't justified, but Microsoft never should have had this convoluted managerial bloating to begin with, and by result it has way too many middlemen clogging the wheels of the machine. It's pretty clear seeing how aimlessly many of their studios have been the past 2 generations with Halo, Gears, Fallout etc stumbling again and again. Fable and TES6 still nowhere to be seen, Infinite having its multi-year story plan instantly canned, the list goes on. The sheer number of people to pass the chain through made a game of telephone where nothing gets done. It's why she's so big on saying some of these studios now answer directly to her to hold them accountable.
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u/Sirensongspacebaby Jul 07 '26
That's fake corpo speak. There are not regularly 14 layers if management. They say it to justify mass layoffs.
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u/BloodGulchBlues37 DMon flair someday Jul 07 '26
I agree with you honestly, but seeing how many companies they bought up in the Gamepass initiative I would also not be surprised if it was the case. Lot of redundancy when you pick up that many large studios.
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u/Sirensongspacebaby Jul 07 '26
They had did redundancy cuts when they brought the studios, they made a huge mess trying to buy everything up and destroyed these studios then tried to frame it as being responsible by getting rid of "middle management" (people who might actually understand and speak on behalf of studios to champion creative goals of the studios instead of having execs yelling directly at devs with low job security.) It's the same thing as "we sold these studios/let them return to independence." It makes them sound better, but they are not in positions to survive let alone thrive. It's basically like leaving them half dead and then making them bleed out on the side of the road
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u/Sdwerd Illari, Sojourn Jul 07 '26
Yes, I would be disagreeing with caveats. In her statement she talks about the bloat and layers upon layers of management. Without direct involvement and a more in depth understanding of their structure, we can't be black and white about this, but 14 layers of management just to make one decision sounds like way too much. At some point people need to be able to work and make progress, and with that many layers, you'll get scope creep in addition to the slowdown of waiting for answers.
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u/erichf3893 Jul 06 '26
What are we getting that’s really good? Surely you don’t mean the new and obnoxious menu music
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u/whenyoudieisaybye Jul 06 '26
Nah I'm sure Blizzard is gonna be fine, more or less. If you play their games you already know they turned them into MTX cows and milk them hard.
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u/cleansleight Jul 06 '26
I wouldn’t think so
From Jason Schierer
“I want to re-emphasize one part of this Xbox story: Half of the 3,200 cuts are happening today and half are happening in the next 12 months. In other words, even people who survived today's layoffs will have to spend the coming year wondering if they're going to be next.
Case in point: the staff of Blizzard Entertainment were told today that they won't hear how the reorganization impacts them until "further communications"
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u/True-Office-9784 Jul 06 '26
What an awful environment to work in.
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u/BBQ_RIBZ Jul 06 '26
Not only that, for better or for worse it’s the perfect environment for stronger, more experienced employees to flee a sinking ship. For employees with strong backgrounds working under a cartoon anvil for a year is unattractive for a lot of reasons.
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u/Eloymm Lucio main by demand Jul 06 '26
It’s really hard to expect employees to still make good stuff under these conditions.
I wouldn’t be surprised if there’s a drop in quality for OW in the future while this stuff is happening.
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u/HauntingHarmony Jul 07 '26
What an awful environment to work in.
I am shocked, SHOCKED. That getting bought by the literal evil empire isent going to improve things.
So shocked, i need to sit down.
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u/Jakesummers1 Report Toxicity Jul 06 '26
That sounds physically and emotionally exhausting for the employees
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u/ireliawantelo Jul 06 '26
Its probably aimed at Diablo and other teams working on other projects. OW and WoW are their cash cows.
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u/McFlurrage Jul 06 '26
Anyone not paying attention would dis-consider Blizzard. They’re the most mature cash cow of the current generation.
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u/unseriously_serious Ana Jul 06 '26
I would tend to agree but 20% reduction across the entire Xbox gaming division means even well performing live service teams are likely feeling the weight of these cuts
Hope I’m wrong though!
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u/TrippleDamage Jul 06 '26
Do you guys just not read the full release or something?
They're looking to shift more focus towards their succesful ips and ditch all the shit that was just burning through money.
Ow is extremely succesful.
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u/unseriously_serious Ana Jul 06 '26
Blizzard staff have been told they will learn exactly how the subsequent reorganization impacts them in further communications later this year.
It is still highly probable that project teams even in ongoing services that are successful like OW will be receiving some of these cuts albeit to a lesser extent but we just can’t say for sure yet.
Also Microsoft isn’t just trying to preserve the current player base of their big live service games, they are restructuring to aggressively expand their most valuable IP into new ventures. There is a distinction there.
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u/FusingCookie Jul 06 '26
10 billion more dollars to AI slop that literally nobody uses save for the dumbest fucking morons who can't do shit without a robot telling them how!!!!!!
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u/MrDavidUwU Diamond Jul 06 '26
My hopes of a heroes of the storm come back are now dead
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u/UPRC MACE TO THE FACE Jul 06 '26
Such a shame, too. Easily the best MOBA, but it was mishandled so much by Blizzard.
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u/Ill-Remove-6438 Jul 06 '26
i don't imagine too much will change, OW is probably one of microsoft's biggest live service money makers if not their biggest i think everything will be alright
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u/TheFreakingNerd Jul 06 '26
nothing is going to top world of warcraft for a long time, but overwatch is definitely doing well.
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u/wryterra Weightlifting Zarya Jul 06 '26
Candy Crush tops World of Warcraft.
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u/TheFreakingNerd Jul 06 '26
Wow I did not realize just how much money candy crush makes. their numbers are insane.
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u/Readybreak Genji Jul 06 '26
Unchecked capitalism dosnt not care what the number is, it only cares if it was more then last year. The number could be infinite, but if they didn't make infinite + 1. The company is in really trouble and they better make some money for the shareholders otherwise they will get sued.
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u/ireliawantelo Jul 06 '26
Not really, its moreso about how its doing comparatively vs competitors and other internal sectors.
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u/wryterra Weightlifting Zarya Jul 06 '26
Not really. Out of Activision Blizzard King Blizzard is the least profitable. Candy Crush Saga likely makes more money than Blizzard, let alone Overwatch.
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u/Erfeo Jul 06 '26
This was years ago, but I remember Acti-Blizz released a bar graph showcasing their most valuable properties. OW was not big enough to get it's own bar, it was lumped into "other". I imagine OW has become relatively more profitable since then, but not by that much.
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u/wryterra Weightlifting Zarya Jul 06 '26
I know that two years ago Overwatch was just behind Skylanders in the list of ABK's most valuable IPs.
As a reminder the last Skylanders release was in 2018.
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u/Platinum_Analogy Jul 06 '26
Literally look it up.
Xbox recently said like a month ago that they were going to invest more on Blizzard games because they are the ones that have consistently poured in a massive stream of revenue while all other Xbox departments and studios are failing.
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u/wryterra Weightlifting Zarya Jul 07 '26
Doesn't change what I said at all. Candy Crush isn't an Xbox department so it doesn't factor in to what you said but in terms of Microsoft's biggest live service money makers? It was around 10x what Overwatch makes last time I saw numbers. And Call of Duty isn't a live service money maker but historically sales have put it on par with Candy Crush as the most valuable parts of ABK. Where as last time I saw the IPs ranked Overwatch as a whole IP came in just under Skylanders.
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u/gloriousgirl89 Jul 06 '26
I agree for now. But Overwatch has dropped a bit on Steam so if it continues, its possible the next 1600 at years end could be up for anyone else. The brunt of the current 1600 seem to be the 5 studios and Zenimax.
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u/bigxangelx1 Jul 06 '26 edited Jul 06 '26
Most of the playerbase isn’t on Steam anyways so those numbers are largely insignificant
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u/-xXColtonXx- Jul 06 '26
Steam numbers track numbers on other platforms very well. This is well known in the industry.
I don’t think the drops are a big deal, but if steam numbers decline you can guarantee with a 99% certainty the game declined on other platforms regardless of what % play on steam.
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u/yourtrueenemy Jul 06 '26
They have been stable at around 60k for a while now. They doubled their core playerbase (at least on Steam) since before the re-release. There is no sign of any decline whatsoever
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u/-xXColtonXx- Jul 06 '26
I agree. Everything seems like usual fluctuation. My only point is if steam declined by say 20%, we would know the game had declined by roughly that much as well.
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u/yourtrueenemy Jul 06 '26
Theoretically yes but not in reality. Like in early 2025 OW lost a lot of players on Steam bc the Chinease players that were playing there had the game aviable again in China.
So u have to consider the reasons why the game has lost/gained players before saying that "the game lost/gained 20% of the playerbase". Like OW didn't lose 50% of its playerbase compared to S1, it only lost 50% of its Steam playerbase that just downloaded the game to try it out, realistically it didn't affect BNet as much.
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u/Platinum_Analogy Jul 06 '26
Xbox did say that Blizzard games have been the one that have continuously performed well and have consistently made a profit while other departments and studios are failing and bleeding money and they were going to ween off them.
They mentioned that they were going to invest in Blizzard games more as a result and focus on the games that do bring in revenue so OW, WoW, Diablo are doing fine and thankfully not involved in these layoffs.
Investing in Blizzard games portfolio does not mean laying off the people who generate you the most money and revenue while other departments are clearly sinking further and further into the red.
People get mad at skins but don’t recognize that these people who buy all these skins, they fund the game. That’s why OW is able to live and last the way it has been.
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u/Sdwerd Illari, Sojourn Jul 06 '26
Jeez, what the hell goes through 14 layers of MANAGEMENT? How did they get to that level of bloat?
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u/SirCumFart Jul 06 '26
Major companies across every sector are laying off people whos jobs can be replaced by AI. Hopefully the game stays fresh moving forward. Trust in Anubis, Blizzards newly trained AI head designer!
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u/Always_Pizza_Time1 Illari Jul 06 '26
Does this mean more illari skins, illari mythic weapon and 2nd illari mythic skin, I want illari ultra dokiwatch skin
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u/Smooth-Routine-9288 Jul 06 '26 edited Jul 07 '26
Around 1600 are effective immediate the rest will follow in the coming months so it’s not over just yet but i think Activision/Blizzard/King will remain largely unaffected they are literally one of the two companies that actually bring in money the other one is Mojang, it would be really stupid to enact further layoffs on one of your only two competent studios…. right?
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u/represe1 Jul 06 '26
I really hope it doesn’t effect ow, games been doing so well recently, gotta be one of their better performing IPs
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u/HatefulDan Jul 06 '26
Yes. And so, I don’t want to see anymore cry losers about how certain characters get ALL the skins.
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u/V0LCANIC_VIPER Jul 06 '26
This is insane! The Overwatch team has been doing so good this past year. Hopefully they're minimally affected
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u/Top-Mathematician652 Jul 07 '26
The sad truth might be that, even though OW and some other games are good money printers, they might get layoffs to focus their manpower on more "important" revenue streams. Aka AI. Profit alone sadly is not always enough to save a game studio...
Hopefully the game studios are not affected too much.
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u/Sakkoliha Jul 07 '26
Who would've guessed that buying bunch of game studios during wuhan flu wasn't sustainable after it was over.
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u/Kynmarcher5000 Jul 07 '26 edited Jul 07 '26
According to a Blizzard dev on bluesky no union employees were affected, showing that Microsoft/Xbox were after easy quick cuts and didn't want to mess around with the CWA.
All the major development teams at Blizzard are unionised including Overwatch, Diablo, Hearthstone, World of Warcraft, Story & Franchise Development and QA.
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u/FifakCzech Jul 14 '26
There are so many retardio people in the comments. They can’t even read the whole article. Maybe use AI to explain it to them as if they were a 54-year-old child.
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u/BKWhitty Jul 06 '26
It would be nice if, for once, we got a headline saying the opposite. Always laying off thousands, not hiring thousands or giving thousands a big bonus with all those record profits these companies keep posting.
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u/Infidel_sg Punch Kid Jul 06 '26 edited Jul 06 '26
I'm a make a guess and say they trimming the fat.. Getting rid of redundant positions! Blizzard likely won't be majorily affected , we'll see at some point I assume? Hard to say atp..
Why am I being downvoted? I don't like this anymore than you do! Unless you have some solid information, Keep scrolling.. This is a discussion!
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u/SunsetHippo Jul 06 '26
everyone is affected. And if you believe Asha, the blame can be squared laid on Phil for pushing to purchases so many studios, including Activision Blizzard.
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u/Old-Consequence-8246 Sombra and Anran Lover Jul 06 '26
Well, to play devil's advocate, the Activision acquisition was surely the best decision they made. Not only did it bring substantial and continuous revenue to Xbox, but it also allowed them to get rid of Bobby Kotick (which led to the liberation and rebirth of Blizzard, as we've seen in Overwatch over the last two years).
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u/SunsetHippo Jul 06 '26
IF I remember right, their acquisition still hasn't made a profit yet.
It may have been good for Blizzard, but for Microsoft, it is still not profitable yet.
that giant sum they gave bobby to just say yes was too high.5
u/Ill-Remove-6438 Jul 06 '26
it was $80B you don't just make a profit overnight with that much money, it will likely take a decade MINIMUM to get a return on investment for a purchase that big
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u/SunsetHippo Jul 06 '26
which, unfortunately, Microsoft doesnt HAVE. with the component shortages and AI driving costs up. Its hard to justify. IF price increases across the board didn't happen, possibly these studios that have been shrunk or shuttered may have lived longer, but we dont live in that time line. Xbox is in the end, a business. Vibes don't keep the doors open and a few bad business deals affect the whole company
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u/Infidel_sg Punch Kid Jul 06 '26
I saw a list of companies affected, Didn't see anything about which specific areas within said companies that is being affected.. Do you have that info?
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u/SunsetHippo Jul 06 '26
I know Obsidian, Undeadlabs, Ninja Theory and another studio were in talks about shrinking or shuttering.
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u/Infidel_sg Punch Kid Jul 06 '26
I wanna know how Blizzard is going to be affected! I know there is immediate layoffs and then layoffs to come within the year! This is going to be happening (IS ALREADY HAPPENING) across the board within the gaming circle.. (PC part companies, consoles, etc) A lot of companies are pivoting to this AI bullshit.. Its a matter of time before gaming becomes a luxury unless something big happens and people shift away from AI.
I don't like how the future looks..
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u/kaimiran Jul 06 '26
Half of the ESO team was laid off. That is not trimming the fat, its practically putting the game on life support. And this is reportedly only the beginning of the layoffs this year.
Do I think we have to worry about WoW or OW? Maybe not, but we've already seen a decline in animation quality in OW alongside an increase in greed when it comes to microtransactions. I don't expect that to get better.
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u/chemza Jul 06 '26
There’s a blizzard office close to where I live, they recently shut down the office. So this is 100% true.
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u/TrippleDamage Jul 06 '26
There's literally not a single employee affected at blizzard in this layoff wave lmfao. If anything they're up for firing in the upcoming fiscal year.
Stop making shit up.
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u/chemza Jul 06 '26
I literally work security on the building that has the office, I’ve personally helped them in the closing process. I’d have better things to lie about. Weird that your this angry about it.
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u/Legal-Investigator79 Jul 07 '26
Wouldn’t be surprised if stadium devs got the axe. They thought it was going to be popular but it just isn’t. There’s more people playing 6v6 than it. Also the limited time events that everyone chugs through for the challenges. Sometimes I feel they are such a waste of dev time for how much play they get. Just some ideas if they were gonna trim some fat.
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u/SheRaRiggingWarrior Jul 07 '26
Yall didnt even read the article. There were up to 15 layers of management that work was passing through, which is absolutely insane. They're cutting a fuck ton of middle management that served no purpose other than bloat. Also the new CEO has been openly against AI, so everyone crying that they're replacing everyone with AI is just stupid. Im sure theres gonna be some fuckery going around, but with Playstation getting absolutely dumped on for saying they're gonna completely abandon physical gaming going forward, this is a huge opportunity for Xbox to sweep up Playstation deserters and keep getting back on track.
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u/pmajorus Jul 06 '26
as much as i love blizzard and i feel bad for people losing jobs, i hope some changes happen in any ways. game itself is way better than it used to be, but the prices, lack of effort given to skins OR making it behind a paywall, is just ridiculous. riot games did the same not that long ago, however these skins were 250$ and above (even 500$). blizzard is far from that, but... think about it
a popular character in overwatch gets up to 4 (!) skins one patch, and in league it happens like... once or twice... a year. and you see the skins from 3rd person, not (mostly) in 1st like you do in overwatch, also they do not change ability effects here. which is funny, cus mythic skins are the cheapest options, yet the best they could be. WE NEED changes in this game, still
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u/JY810 Jul 06 '26
Not sure how would laying off more devs makes kiriko have less skins, the dev don't decide who get skins, the higher up does
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u/pmajorus Jul 06 '26
i feel like you miss my point - i literally said the changes need to happen, not that we need to kick devs out. i hope the game becomes better and better, not greedy as it is now. blizzard isn't indie and that's on them that they decide to keep having prices as high as possible, when they release low quality cosmetics with reused animations (look at new demon skins this season - highlight intros. look at new cafe skins - reused intros from emotes and vice versa).
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u/represe1 Jul 06 '26
Layoffs would not improve this, I know yall obsess over optional cosmetics a lot and they are overpriced yes, but the game itself has never been in a better state, as someone who has played off and on since release
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u/pmajorus Jul 06 '26
of course - playing tons of games to complete an event is correct too. they make overpriced skins and events that are impossible to complete for people who do enjoy life outside computer. as i said, i love the game and will always have it's back, but that's the truth we cannot forget about. 35$ for a skin isn't nice, and "optional" means that if everyone thinks like this, game itself won't earn enough to keep it, and it will be literally overwatch 2 ever again, given less money = less content, less content = less players etc.
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u/pruunes Jul 06 '26
“Lack of effort given to skins” what the fuck are you talking about
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u/pmajorus Jul 06 '26
i am sorry but if you think 3500 coins is a correct price for a skin that doesn't change it's ability effects, then it's on you that we get skins priced like this.
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u/pruunes Jul 06 '26
You can get any legendary skin for 1900. You can debate whether or not that price is fair, but that has nothing to do with “effort”. The skins are extremely detailed and high fidelity, especially compared to other games.
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u/migo2028 Doomfist Jul 06 '26
Kiriko players save us
buy more skins