Tag: Activision Blizzard

  • Microsoft Xbox Division Faces Pressure from Unrealistic Financial Goals

    Microsoft Xbox Division Faces Pressure from Unrealistic Financial Goals

    Key Takeaways

    1. Xbox division faces tough times with layoffs and unrealistic financial targets set by Microsoft’s CFO, Amy Hood.
    2. Debate exists regarding the realism of financial expectations, particularly after the Activision Blizzard acquisition.
    3. Xbox revenue dropped significantly from $21.5 billion in 2023 to $15.7 billion in 2024, due to lower hardware sales.
    4. Xbox Game Pass subscriber growth is steady but far from the target of 100 million users by 2030, with 35 million expected by mid-2025.
    5. Significant layoffs have impacted key studios, leading to restructuring challenges within Xbox Game Studios.

    The Xbox section of Microsoft is facing tough times, with layoffs and challenging financial goals that could harm its future, insiders reveal. This situation seems to stem from rising pressure from upper management. The Xbox team has been assigned a “completely unrealistic financial target,” which might hinder its progress.

    Insider Insights

    According to Windows Central’s Jez Corden, who shared the update on X, Microsoft’s CFO Amy Hood has set an “unrealistic” financial target for Xbox. Corden suggested that these high expectations could “keep hurting the division.” This news comes right after significant layoffs at Microsoft, which have severely impacted Xbox and its associated studios.

    Different Opinions

    Tom Warren from The Verge added his thoughts, arguing against the “unrealistic” tag, saying, “I don’t think it’s unrealistic; it’s just the reality of the Xbox business after the ABK acquisition. Without that deal, Xbox revenue would be lower, and the Game Pass bet hasn’t paid off yet.”

    The ABK Acquisition

    The acquisition being discussed is Microsoft’s $68.7 billion purchase of Activision Blizzard, which has boosted the company’s portfolio with franchises like World of Warcraft, Diablo, DOOM, and Call of Duty.

    To compare, Microsoft’s overall revenue for the fiscal year 2022 was $198.27 billion, with the Xbox division contributing a mere $16.23 billion during that time. In 2024, Microsoft’s Xbox revenue dropped to $15.7 billion, a significant decline from the previous year’s $21.5 billion. Insiders suggest that this decline is due to lower Xbox hardware sales, with Microsoft selling only 2.7 million units, while Sony managed to sell 4 million PS5 units in the same timeframe.

    Game Pass Growth

    On a brighter note, Xbox Game Pass reached 34 million subscribers in early 2024. By mid-2025, it’s reported that the subscription service has surpassed 35 million subscribers, which is considerably below Microsoft’s target of achieving 100 million users by 2030.

    Game Pass generated $4.7 billion in revenue in 2024 and is expected to bring in around $5.5 billion by 2025. However, this growth is not likely to compensate for Microsoft’s larger financial commitments.

    Restructuring Challenges

    Clearly, the financial strain has been intense, as Microsoft laid off 9,100 employees, impacting AAA studios like Turn 10, Rare, Romero Games, and The Initiative.

    Xbox Game Studios is going through a significant restructuring phase, and the path forward appears quite challenging. The effects of the layoffs have resonated throughout the gaming sector, evident on LinkedIn where former employees have shared their layoff experiences, often unexpectedly.

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  • Microsoft Cuts 9000 Jobs, Xbox Division Faces Major Layoffs

    Microsoft Cuts 9000 Jobs, Xbox Division Faces Major Layoffs

    Key Takeaways

    1. Microsoft is laying off approximately 9,000 employees, representing nearly 4% of its global workforce, to simplify its structure for fiscal year 2026.
    2. The gaming division, especially the King division known for Candy Crush, is significantly impacted, with about 200 job cuts (10% of its workforce).
    3. This is the fourth round of layoffs in the Xbox division over the past 18 months, following previous cuts totaling around 10,000 jobs in 2023.
    4. The layoffs are part of Microsoft’s strategy to adapt to a changing market and to prioritize the best opportunities for future success.
    5. Microsoft aims to streamline its management structure by reducing layers between executives and employees.

    Microsoft has decided to lay off around 9000 staff members, impacting nearly 4% of its total global workforce across different teams and locations. This decision represents another phase of layoffs as the company seeks to simplify its structure at the beginning of its fiscal year for 2026. The software giant from Redmond usually makes organizational changes at the start of each fiscal cycle.

    Company Statement

    “We are continuing to execute the necessary organizational changes to position the company and teams for success in a changing market,” said a spokesperson for Microsoft.

    Impact on Gaming Division

    The gaming sector is one of the most significantly affected areas. According to Bloomberg, workers from Microsoft’s gaming division, including the Xbox team, were notified about the job cuts early Wednesday. Specifically, the King division, based in Stockholm and famous for the widely played game Candy Crush, is cutting about 10% of its workforce, which translates to around 200 jobs lost. Other layoffs have been confirmed in European gaming offices, with further announcements expected for U.S. divisions later today.

    Phil Spencer, the CEO of Microsoft Gaming, addressed the layoffs through an email to employees, stating:

    “I understand that these changes occur at a time when we have more players, games, and gaming hours than ever. Our platform, hardware, and game plans have never been more robust. The success we are currently experiencing is a result of difficult choices we’ve made in the past. We must make decisions now to ensure continued success in the coming years, and a crucial part of that strategy is the discipline to prioritize the best opportunities.”

    Recent Layoff History

    This is the fourth round of cuts in the Xbox division over the last 18 months. Last year, Microsoft cut nearly 2000 jobs in the gaming sector, including positions at Xbox and Activision Blizzard, and also shut down three ZeniMax game studios after acquiring them in 2021. These actions are part of Microsoft’s ongoing efforts to integrate following its $69 billion acquisition of Activision Blizzard in October 2023.

    The latest layoffs come after several rounds of job reductions this year. Earlier, in January, Microsoft let go of less than 1% of its workforce based on performance assessments. In May, the company laid off over 6000 employees, followed by 300 more positions cut in June. By June 2024, Microsoft had around 228000 employees globally. In 2023 alone, the company had already decreased its workforce by 10000.

    As with the layoffs in May, Microsoft aims to streamline its management structure by minimizing the layers between top executives and individual contributors.

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  • Microsoft Layoffs Expected to Affect Xbox Gaming Division Jobs

    Microsoft Layoffs Expected to Affect Xbox Gaming Division Jobs

    Key Takeaways

    1. Microsoft has announced 305 job cuts, adding to the previous reduction of about 6,000 employees, signaling a shift in focus towards software development over new console creation.
    2. Employee morale is declining due to uncertainty about potential further layoffs, causing anxiety about the company’s long-term strategies.
    3. The Xbox gaming division is facing job losses, particularly after the Activision Blizzard merger, with 1,900 positions cut in early 2024.
    4. Microsoft’s gaming strategy is shifting towards cross-platform publishing, allowing first-party titles on other consoles like the PS5, while competition from SteamOS intensifies.
    5. Plans for a new Xbox console remain uncertain, with a potential release for a successor to the Series X aimed for 2027, but there are ongoing developments with new controllers.

    Microsoft has recently declared 305 job cuts, following a significant reduction of about 6,000 employees back in May. The firm has not disclosed whether these layoffs affect the Xbox gaming division. However, Tom Warren from The Verge is now suggesting that further job losses at Microsoft could have consequences for gamers. This restructuring indicates a shift towards prioritizing software development over creating a new Xbox console.

    Falling Morale Among Employees

    Warren’s article highlights a concerning trend of declining morale among staff. The uncertainty surrounding the potential for additional layoffs is contributing to growing anxiety. Employees are left pondering the company’s long-term strategies and how these may influence their roles. Warren has heard that more unfortunate news could surface as early as the end of June. Unlike previous rounds of job cuts, the Microsoft Gaming sector might face substantial changes.

    Xbox Gaming’s Challenges

    The Xbox gaming division is not immune to layoffs, with most occurring in 2024 after the merger with Activision Blizzard. In January 2024, Phil Spencer announced the elimination of around 1,900 positions from a workforce of about 22,000. This reorganization involved Corporate Vice President of Gaming Mike Ybarra, who had been part of Microsoft since 2009.

    As Xbox re-evaluates its focus, it wouldn’t be shocking to see more job losses. Console sales have declined while Microsoft pivots towards cross-platform publishing. Now, gamers can access first-party titles even on Sony’s PS5. At the same time, with competition from SteamOS, Microsoft aims to enhance gaming on Windows devices. Asus is reportedly gearing up to launch an Xbox-themed handheld PC, similar to the ROG Ally.

    Future of Xbox Console Development

    Jez Corden from Windows Central indicates that Microsoft’s plans for a new Xbox console are currently uncertain. Nevertheless, a successor to the Series X is still in the works, aiming for a possible release in 2027. The company has not completely forsaken hardware, as there are rumors about three new controllers being developed. However, the shifting focus within Microsoft Gaming may shed light on why Tom Warren is predicting more layoffs.

    News about any unfavorable developments within Microsoft Gaming is not expected to be revealed until after the Xbox Games Showcase on June 8th.

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    Microsoft Layoffs Expected to Affect Xbox Gaming Division Jobs

     

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  • Activision Confirms Use of Generative AI in Call of Duty

    Activision Confirms Use of Generative AI in Call of Duty

    Key Takeaways

    1. Fans were disappointed by the release of the “Necroclaus” loading screen in Call of Duty: Black Ops 6, featuring odd visuals like a zombified Santa with six fingers.
    2. The “Gobblegum Mania” loading screen also showcased strange designs, including a hand missing a thumb, raising concerns among players.
    3. Players are urging Activision Blizzard to clarify its use of generative artificial intelligence after previously dismissing real artists.
    4. Steam introduced a new AI disclosure policy in December 2024, but its connection to Call of Duty remains unclear.
    5. Developers may expand the use of AI in gaming, potentially creating entire game levels, following the launch of the Muse AI model.

    When Activision Blizzard released the Season 01 Reloaded update for Call of Duty: Black Ops 6 (available on Amazon) in early December 2024, some fans were a bit disappointed by a new loading screen showcasing “Necroclaus.” This zombified Santa Claus has what appears to be six fingers on a rotting hand, along with presents that have oddly placed ribbons. Additionally, the “Gobblegum Mania” loading screen features another six-fingered hand in a glove grasping several gumballs, but it is missing a thumb. Fans also noticed strange visuals on a calling card from a set of paid downloadable content. Because of these examples, players have been urging the publisher to reveal its use of generative artificial intelligence, particularly after dismissing numerous real artists previously.

    Uncertain Connections to Steam

    It’s still unknown if Steam’s recent AI disclosure policy is connected to Call of Duty or if Valve was already planning to add it to its product pages. However, we do know it was introduced in December 2024. A new note has popped up on the Steam page for Call of Duty BO6, stating:

    The developers explain how their game incorporates AI Generated Content: Our team uses generative AI tools to help develop some in-game assets.

    The Future of AI in Gaming

    While this statement confirms the hints and speculation about Call of Duty’s utilization of AI assets, it’s uncertain how the player community will respond. With the launch of the Muse AI model, developers might soon expand their use of artificial intelligence beyond just loading screens and in-game items, potentially creating entire game levels through AI technology.

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    Activision Confirms Use of Generative AI in Call of Duty

     

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  • Blizzard Game Director Discusses World of Warcraft 2 Details

    Blizzard Game Director Discusses World of Warcraft 2 Details

    World of Warcraft has stood tall as the leading MMO for an astounding two decades and eleven expansions, and it shows no signs of stopping. The game is changing rapidly, with its latest expansion, The War Within, set to launch in August 2024. Players won’t have to wait too long for more, as the next expansion, Midnight, is expected to be revealed in summer 2025. Blizzard has also released a clear roadmap that lays out their plans for the future, keeping the enthusiasm strong among its loyal fanbase.

    Graphics and Gameplay Concerns

    Yet, many players now feel that the visuals and the traditional tab-targeting combat system seem outdated. The idea of a "WoW 2" that could refresh these features is a hot topic among fans. In various interviews, the subject of a successor to World of Warcraft has become quite common, especially in a recent chat between Games Radar and Ion Hazzikostas, the Game Director at Activision Blizzard. Surprisingly, Hazzikostas didn’t completely reject the notion. His answer regarding the possibility of a WoW successor was quite thought-provoking:

    "Theoretically, at some long, distant point down the line, that may be a question we grapple with seriously," he states. "But, for the time being, we have a huge, vibrant, and growing player community that we’re excited to serve."

    The Future of World of Warcraft

    This means that a WoW 2 is still a possibility. However, as long as World of Warcraft remains successful in its current form, Activision Blizzard will carry on developing it, as Hazzikostas points out:

    "When we have this vibrant world with millions of players, our priority is to serve them as best we can – to keep expanding the journeys, the worlds we build, and every step of the way we make the improvements we think will best appeal to the modern audience."

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  • Call of Duty: Warzone Mobile Hot Drops for iOS & Android – Play Day Zero Event!

    Call of Duty: Warzone Mobile Hot Drops for iOS & Android – Play Day Zero Event!

    First person shooter juggernaut, Call of Duty, has entered the realm of mobile gaming with a brand new release. The long-awaited mobile version of Call of Duty: Warzone is now available for iOS and Android users. Here’s a comprehensive overview of Call of Duty: Warzone Mobile’s launch, limited time event, and how to download it.

    Call of Duty: Warzone Mobile: Download Location, Size, & More

    After a period of anticipation, Activision has introduced Call of Duty: Warzone Mobile to the gaming community. The game can be downloaded from the Google Play Store and Apple App Store for both Android and iOS devices. With an installation size of approximately 8GB on each platform, players can easily locate the game by searching on the respective app stores. It is important to mention that the game’s release is being rolled out gradually.

    Game Availability Update

    For users unable to find the game immediately, fret not as the release is being distributed in phases. While the global rollout is ongoing, the game may not be accessible to everyone just yet. Participants in the limited testing phase will receive the official release version of Call of Duty: Warzone Mobile. Android testers can swiftly update to the final version, whereas iOS players are required to uninstall the early build to access the public release.

    Call of Duty: Warzone Mobile Bonus Features

    To commemorate the launch of Warzone Mobile, Activision has introduced bonus content. A special event is scheduled to commence on March 22, where players will engage in battles across six contested zones on maps like Verdansk and Rebirth Island. By completing Event Actions within these zones, participants can accumulate points during the event and receive exclusive Day Zero Supply Drops containing superior loot. Additionally, Community Rewards and Individual Rewards are planned to enhance the overall gaming experience during this event.

    Call of Duty: Warzone Mobile Hot Drops for iOS & Android - Play Day Zero Event!
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  • World of Warcraft Marks Blizzard’s Resurgence in China, Paving the Way for a New Era in Gaming

    World of Warcraft Marks Blizzard’s Resurgence in China, Paving the Way for a New Era in Gaming

    The Return of World of Warcraft to China: Blizzard’s Potential Reunion with NetEase

    The gaming community is abuzz with news that Blizzard Entertainment, the renowned American video game giant, may be rekindling its partnership with China’s NetEase. This development has sparked speculation about the potential return of the legendary game World of Warcraft (WoW) to the Chinese market, which is a significant player in the online gaming industry.

    Blizzard’s quest to reintroduce WoW in China has been a challenging journey. After their initial agreement with NetEase expired in early 2023, Blizzard explored collaborations with other Chinese publishers. However, they ultimately circled back to NetEase, suggesting a nuanced understanding between the two gaming giants, despite previous disputes.

    WoW’s Cultural Revival in China

    The potential resurgence of WoW in China is not merely a business maneuver; it holds cultural significance. WoW has been a prominent name in Chinese gaming since 2009, but its player base has dwindled from 5 million to around 350,000 by January 2023. The return of the game could breathe new life into its presence in the world’s largest video gaming market in terms of revenue.

    Rebuilding Operations and Game Servers

    However, this reunion is not without its challenges. Before WoW can grace Chinese screens once again, Blizzard and NetEase will need to rebuild their operations team and ensure that the game servers are up to the task. This process is expected to take at least six months, emphasizing the complexity of bringing the game back to the Chinese market.

    Blizzard’s gaming portfolio has faced difficulties in China due to the country’s regulatory landscape. Foreign games are required to be published through local partners, as part of China’s broader approach to managing its gaming industry. This approach includes strict content guidelines and playtime restrictions for minors. These regulations have impacted Blizzard’s operations in China, and the potential reunion with NetEase may offer an opportunity to navigate these challenges more effectively.

    Microsoft’s Acquisition of Activision Blizzard

    The backdrop to this potential Blizzard-NetEase reunion is Microsoft’s recent acquisition of Activision Blizzard, the parent company of Blizzard Entertainment. With a staggering price tag of $68.7 billion, this merger has cleared significant regulatory hurdles and could potentially shape Blizzard’s strategy in China in the near future. The influence of Microsoft’s resources and expertise may play a pivotal role in Blizzard’s efforts to regain its foothold in the Chinese gaming market.

    In conclusion, the potential reunion between Blizzard Entertainment and NetEase has sparked excitement among gaming enthusiasts, as it may pave the way for the return of World of Warcraft to China. This cultural revival could reinvigorate WoW’s presence in the world’s largest gaming market, but it will require careful planning, rebuilding of operations, and navigating China’s regulatory landscape. With Microsoft’s recent acquisition of Activision Blizzard, the future of Blizzard’s strategy in China holds promise and potential.

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  • Xbox Acquisition Leads to Activision Blizzard CEO’s Resignation.

    Xbox Acquisition Leads to Activision Blizzard CEO’s Resignation.

    Bobby Kotick to Resign as CEO of Activision Blizzard

    Bobby Kotick, the long-serving CEO of gaming powerhouse Activision Blizzard, is scheduled to step down from his position on December 29. This decision comes in the aftermath of the substantial acquisition of the company by Xbox for a staggering $69 billion, which was completed in October. The official announcement of Kotick’s departure, which was initially hinted at in an internal communication, signals a momentous shift in the gaming industry’s landscape.

    Kotick’s Influence on Activision Blizzard

    Kotick’s time at Activision Blizzard has been remarkably eventful. During his leadership, the company witnessed the rise of beloved gaming series such as "Call of Duty," "World of Warcraft," and "Candy Crush Saga." These franchises not only achieved significant commercial success but also played a vital role in shaping the global gaming culture. His imprint on the industry is indisputable, with countless gamers engaging with these franchises over the years.

    The Unconventional Transition and Strategic Transformation

    Notably, Kotick’s departure does not come with an immediate replacement. This unorthodox decision hints at a strategic transformation within the company, particularly following its integration into the Xbox ecosystem. Phil Spencer, the head of Xbox, has openly expressed his admiration for Kotick’s contributions and the enduring legacy he established at Activision Blizzard. Spencer’s recent internal correspondence highlights Kotick’s pivotal role in the gaming realm and the successful completion of the acquisition process.

    A Fresh Course for Activision Blizzard?

    The absence of a direct successor for Kotick might signify a new trajectory for Activision Blizzard under the supervision of Xbox. With the gaming sector becoming increasingly competitive and diverse, the amalgamation of Activision Blizzard into Xbox’s domain could usher in a new chapter of creativity and cooperation in game development and distribution.

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  • The Unachieved Aspiration of an Activision Blizzard Android Game Store: Project Boston

    The Unachieved Aspiration of an Activision Blizzard Android Game Store: Project Boston

    The primary avenues for installing games and applications on Android and iOS devices are the Google Play Store and the Apple App Store. While Apple currently dominates within its ecosystem, the situation is different for Google. Android’s open platform has allowed competing stores to challenge the Play Store for quite some time.

    Activision Blizzard’s Interest in Competing with Google Play Store

    Before diving into the details, let’s address a fundamental question: Why would companies like Activision Blizzard want to compete with the Play Store and App Store when uploading an app to these stores seems like a simpler process? The answer typically boils down to one thing: money.

    Both Google and Apple take a commission from the revenue generated by every game uploaded to their respective app stores. So, if you make a purchase within a game like Call of Duty Mobile, Activision Blizzard has to pay a portion of that money to the store owner. This commission usually ranges from 5% to 30%. It appears that Activision grew weary of this arrangement and explored the idea of competing with Google in 2019 by creating its own store.

    Activision Blizzard’s “Boston” Project

    The company initiated a project codenamed “Boston.” The plan involved featuring games like Candy Crush, Call of Duty Mobile, and Diablo Immortal on this platform and removing them from the Play Store. However, these plans never materialized, primarily due to the variable nature of store commissions.

    For developers relying solely on this income, paying the requested amount to Google is non-negotiable. Yet, for a gaming giant like Activision Blizzard, negotiations could lead to a special deal. This would enable them to reduce the commission to a level that is acceptable or potentially eliminate it altogether. Google seems determined to maintain its dominance through such strategic maneuvers.

    Apple’s Potential Changes

    In the case of Apple, currently unrivaled in its position, there are expectations that it will open iOS to new app stores with the iOS 17.2 update, following European Union laws. When this occurs, the company is anticipated to adopt strategies similar to its competitor.

    Overall, while the Google Play Store and Apple App Store remain the primary channels for downloading games and applications, the landscape may be shifting in the near future. With companies like Activision Blizzard considering alternatives to reduce commission fees, and potential changes in Apple’s approach, the app store market could become more competitive. Developers and consumers alike will be watching closely to see how these developments unfold.

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