Another round of layoffs was announced by CEO of Microsoft Gaming, Phil Spencer. Phil outlined this week that another 650 layoffs were coming down the pike. In an already layoff heavy year industry wide, more layoffs are expected. In any case, the news is sad to hear. No one in the industry wants anyone to be laid off.
According to Game File (via IGN), the layoffs will specifically affect Activision Blizzard’s development teams assigned to Call of Duty Warzone Mobile and Warcraft Rumble. This is following what has seemed like a long integration process between Microsoft and ABK. Layoffs during acquisitions is to be expected, but we are not sure anyone expected just how many layoffs would actually occur.
Call of Duty Warzone Mobile released on March 21, 2024, on iOS and Android platforms. The game offers to neat features that include cross-progression with the regular Warzone mode that is playable on consoles and PC and matches with the ability to compete against up to 120 players.
Warcraft Rumble is in Season 8, with Season 9 starting in October. It is a free-to-play tower defense and action strategy game developed by Blizzard Entertainment. Its initial release date was back on November 3, 2023 on IOS and Android. This studio was included in a unionization that recently happened and is Blizzard’s first ever “wall-to-wall” union. The union has responded to the layoffs.
“Microsoft’s decision to lay off 650 video game workers is an extremely disappointing move from one of the world’s largest and most profitable corporations. This news comes just after Sony Interactive Entertainment subsidiary Bungie announced 220 layoffs in late July. While none of those who are losing their jobs are represented by CWA, we understand how devastating layoffs are to the workers and their families.”
The layoffs seem puzzling to say the least. Especially when we consider that Xbox and Microsoft have stated publicly before about the desire to grow their mobile gaming presence. Heavy layoffs in two of their newly acquired mobile studios seem to run contrary to their public statements made previously.
Spencer insists that this round of layoffs will not affect games in development, and the studios will not be canceled, still the layoffs are adding up for Microsoft and the industry is undoubtedly losing talent left and right. Which ends up begging the question, what will the industry look like in the future.
