The survival game that Blizzard had been developing since January 2022 has reportedly been canceled. This decision comes after Microsoft’s $69 billion acquisition of Activision Blizzard and subsequent layoffs. Although the game didn’t have a title yet, it was intended for PC and consoles, aiming to introduce new stories and characters. Employees were invited to partake in its development in January 2022. The cancellation was announced in an internal memo from Microsoft Games CEO Phil Spencer, who stated that the project would be replaced and some of the team members would be reassigned to other projects in early development. In total, 1,900 employees will be laid off, which accounts for 8.64 percent of Microsoft’s gaming division workforce. The layoffs will affect multiple Blizzard teams, including development, shared services, and corporate operations. Bobby Kotick, CEO of Activision Blizzard, had previously pledged to retain as many employees as possible after the acquisition by Microsoft. The job cuts are part of an effort to focus on products and strategies with the most potential for Blizzard’s future growth. Employees will receive severance pay according to local labor laws. Additionally, Blizzard president Mike Ybarra and chief design officer Allen Adham are leaving the company. Ybarra, who joined Blizzard in 2019, had previously served as a senior Microsoft executive for over 20 years. After Kotick’s departure, this represents another major change in leadership at the game studio. These layoffs were anticipated following the completion of the acquisition and amidst a major merger for the tech giant. Despite the job cuts, Microsoft recently reached a market capitalization of $3 trillion.
