Activision Blizzard has laid off about 50 employees, according to a new report from precipice.
This news comes on the same day Activision Blizzard released Results for the second quarter of fiscal year 2023highlighting a bleak future for the company’s e-sports efforts despite a financially successful quarter for the Overwatch 2 maker. Activision Blizzard results show net pre-orders have dropped increased 50% year-on-year in the second quarter, from $1.64 billion to $2.46 billion, due to profit Diablo IV launch, increased revenue from various franchises, growth on mobile, etc. However, despite that growth, the company laid off about 50 employees in its e-sports division. by Blizzard, precipice report.
One layoff told the publication that the layoffs “seemed like a significant drain on Activision Blizzard esports,” while another told it, “No warning. This was a complete shock to everyone, and none of us, who were laid off, were given any chance to switch roles or teams.”
These layoffs come before what could be a major shakeup for Activision Blizzard’s e-sports efforts, though that will depend on a vote by sports team owners. eSports later this year. Here’s what the company’s financial results say about that vote:
“As previously disclosed, our partnership arrangements for our professional eSports tournaments continue to face obstacles. During the second quarter, we revised certain provisions of our partnership agreements with the Overwatch League participating team organizations. Under the revised terms, after the end of the current Overwatch League season, teams will vote on an updated operating agreement. If the groups do not vote to continue under an updated operating agreement, each participating group entity will be charged a $6 million termination fee (approximately $114 million in total). . As of June 30, 2023, termination liability has not been accumulated. Total revenue from the Overwatch League represents less than 1% of our consolidated net revenue.”
It’s important to note that this potential vote does not mean that Activision Blizzard’s esports, primarily the Overwatch League, will end; it can only be another show after this vote and moving forward, but only time will tell.
Game Info has reached out to Activision Blizzard for a statement regarding the layoffs and the company’s overall outlook on esports and will update this story accordingly if a statement or comment is received. Brad Crawford, senior director of global communications at Activision Blizzard said precipice, “We remain committed to the future of esports, and we regularly assess whether our team aligns with our business goals to ensure we can grow to the next level. The trends are changing and providing the best for our teams, players and fans. As always, supporting our employees through the transition is our top priority.”
These layoffs at Activision Blizzard happen just a day before it and Microsoft mutually agree to extend the deadline for completing the merger that would make the publisher-developer giant a first-party output fork of Xbox. However, Microsoft, Xbox and Activision Blizzard must face UK Regulatory AuthorityDepartment of Competition and Markets, blocked the acquisition in April, before it can move forward as planned. Microsoft and Activision Blizzard currently have until October 18, 2023 to close this purchase.
[Source: The Verge]
