The reporting about Activision-Blizzard recently have been dire. Following initial reports that Microsoft had eliminated approximately 1,900 positions, more details began to emerge about what else had been impacted. For example, Odyssey, an unfinished survival MMO was cancelled, with those working on its admitting that the project was a mess with it constantly struggling with "engine problems." Additionally, this week it was reported that Mike Ybarra was leaving his position as President of Blizzard, and would be replaced by Johanna Faries, the content executive behind the Call of Duty games. If I can interject, it is worth calling attention that Ybarra is not an entirely sympathetic figure even if he was attached with Blizzard for decades. Ybarra was single-handedly responsible for demoralizing many of his staff by sending an email imploring everyone to return to in-person work while slashing promised bonuses and had a mixed track record on addressing the toxic work environment levied against former Blizzard co-lead, Jen Oneal, when you consider he called Oneal his righthand man until his ousting. That said, with Microsoft tapping an executive from Activision to fill Ybarra's position, they are ending what many have called the tatical independence Blizzard has had from Activision's influence.
On top of all that, Microsoft has finalized the almost complete gutting of Activision-Blizzard's eSports division. Again, this was a wind-down and write-off that started even before Microsoft finalized its purchase of Activision-Blizzard, with the dissolution of the Overwatch League being a slow and painful process in 2023. Nonetheless, 83% of Activision-Blizzard's eSports related staff have been terminated, and as a replacement, Blizzard Entertainment signed a deal with ESL-FaceItto become the partner on the Overwatch 2 esports league. The ESL, need I remind you, is bankrolled by the Saudi government.
The news of these layoffs also take place under the backdrop of Microsoft reporting massive gains in terms of its overall revenue with Forbes and Fortune both declaring Microsoft to be the second company in human history to achieve a market value of $3 trillion. Admittedly, Microsoft's acquisition is not the primary driver of this explosion of wealth, as the company's stock price has increased 1,006% since current CEO Satya Nadella took over. Instead, it has been Microsoft's continual investments in cloud computing and its roundabout manner last year of gaining a foothold in OpenAI's board of directors after it attempted to oust Sam Altman.
Nonetheless, Microsoft's Q2 FY4 net income has jettisoned to $22 billion, and in terms of its gaming and Xbox content brand, overall revenue from Xbox content and services has jumped 61% since the company acquired Activision-Blizzard.
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