The software giant, which bought Activision Blizzard three months ago, is laying off 8 per cent of the gaming division’s total staff.
The cancellation of the game, code-named Odyssey, left Blizzard employees reeling as some lost their jobs and others were left wondering about the future of the studio.
Microsoft announced the news in an email to employees early Thursday morning, and many members of the Odyssey team were subsequently informed that they were being let go. The news arrived three months after Microsoft closed the US$69 billion acquisition of Activision Blizzard in the largest video-game deal in history.
As part of the reorganisation, Blizzard also parted ways with president Mike Ybarra and chief design officer Allen Adham, one of the company’s co-founders. Blizzard said its new president will be announced next week.
The maker of many hit games, including World of Warcraft and Diablo IV, has mostly focused on its large, existing franchises. But in recent years, the company made a big investment in Odyssey, building up a team of more than 100 people to develop it.
The game, set in a new universe, was in development for more than six years and outlasted many other Blizzard incubation projects. Now, the future of such efforts outside of existing franchises is uncertain.
In a statement, Blizzard spokesman Andrew Reynolds said the game’s development had ended “as part of a focus on projects that hold the most promise for future growth” and that the company would “move some of the people on the team to one of several exciting new projects Blizzard has in the early stages of development”.
