Microsoft and Blizzard Cut Gaming Jobs Amid Industry Shifts

Blizzard Entertainment has made the decision to cancel a major project, known internally as Odyssey, amid a broader reorganization within the company. This decision was made in the wake of Microsoft Corp's acquisition of Activision Blizzard for approximately $69 billion. The cancellation of the game, which had been in development for over six years, coincides with a significant reduction in staff, with 1,900 employees, or about 8% of the gaming division's workforce, being laid off.

The layoffs have impacted various teams across Blizzard, extending beyond the Odyssey project to include development teams, shared service organizations, and corporate functions. In addition to the project cancellation, Blizzard has announced the departures of high-level executives including President Mike Ybarra and Chief Design Officer Allen Adham.

Odyssey was poised to be Blizzard's first new franchise since the release of Overwatch. The move to cancel the survival game and streamline operations comes at a time when the gaming industry is experiencing a wider trend of layoffs. The future direction of Blizzard, particularly regarding new franchises outside of its established series such as Diablo, Warcraft, and Overwatch, remains uncertain following these changes.