This news follows Microsoft’s recent decision to let go of 1,900 employees from Activision Blizzard and Xbox.
In 2022, Blizzard had announced the development of a new survival game, marking its first new venture since the launch of Overwatch in 2016. However, this game has now been canceled due to recent layoffs at Microsoft.
Microsoft recently laid off 1,900 employees across its gaming divisions. The majority of these layoffs affected Activision Blizzard, which Microsoft had acquired in October for $68.7 billion. Employees at ZeniMax and Xbox were also impacted. This follows a similar trend in the gaming industry, with Riot Games, the developer of League of Legends, also cutting over 500 jobs earlier this week.
Matt Booty, the head of Xbox Studios, stated in a staff note that the layoffs affected multiple teams within Blizzard, including development teams, shared service organizations, and corporate functions. As a result, Blizzard has ceased development on its survival game project, and some of the team members working on it will be moved to other promising new projects that are in the early stages of development.
The announcement also confirmed the departure of Blizzard president Mike Ybarra and chief design officer Allen Adham. Despite the lack of detailed information about the canceled survival game, it was significant as it represented a rare new franchise from Blizzard, a company known for its focus on core brands such as Diablo, Warcraft, Overwatch, and StarCraft.