What’s The News?One of the largest gaming companies in the world: Activision Blizzard had announced massive layoffs in the coming days. Hundreds of employees will be fired, as the gaming behemoth plans to trim its 9000 plus workforce. Click To Tweet
Now, insider details have emerged regarding the firing of employees. We are hence aware which teams and divisions would get impacted.
Besides, the company has also announced a recall of one of their latest games, and the refunds generated will put additional pressure on the finances of the company.
What Does This Mean?
Earlier, we had reported that hundreds of employees will be fired from Activision Blizzard, but we didn’t have the specifics. As per reports coming in from Kotaku, the teams dealing with their ill-fated game Destiny will be impacted the most.
- Activision Blizzard had full-fledged teams for sales, marketing, PR, after-sales and more, dedicated solely for Destiny. It is being feared that entire teams will be fired now. Issues with this game and slower sales of Destiny 2: Forsaken had also prompted the company to end their association with developer company Bungie, which will mean further $400 million loss in revenues.
- Amidst this chaos of layoffs, Activision-Blizzard has announced that they will recall their popular game: Guitar Hero Live. Every purchase made between December 1st, 2017 and January 1st, 2019 will be refunded back.
- The reason for this massive recall is that the company has shut down Guitar Hero TV streaming music service, which was inbuilt in the game. Users have paid money for extra songs, and the library has been culled to just 42 songs from 484 before.
Why Does This Matter?
The Bigger Picture:
Both of these decisions: Terminating employees who worked for the success of Destiny game, and refunding millions of dollars to users who paid for Guitar Hero game spells doom for Activision-Blizzard.
These decisions can have long term implications, as the morale of other employees will take a hit, and negative vibes will be sent out to the investors.
Game recall, and refunding millions of dollars back to consumers will make a big dent in the finances of the company, which can translate to more layoffs.
Overall, 2019 hasn’t been great for Activision-Blizzard and other traditional video gaming companies such as EA and Take-Two Interactive Software, even as the popularity of free online based games such as PUBG and Fortnite increases.
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