Activision Blizzard Cancels Unannounced Survival Game After Microsoft Layoffs

In case you missed it, Microsoft made an industry-shaking acquisition at the tail end of last year, buying up Activision Blizzard King for an eye-watering $69 billion. It took a long time to close, though, because of intense scrutiny from a handful of different sources — one of those being the USA's Federal Trade Commission (FTC). Now, in the wake of Microsoft cutting thousands of jobs, the FTC is back on the company's case, accusing it of contradicting statements made in court about how the business would operate post-acquisition.

Activision Blizzard is making «major changes» to Overwatch 2 as part of a «revitalisation» of the free-to-play shooter that hopes to «make PvP gameplay more rewarding and fun», as well as «provide greater transparency for players in-game».

Microsoft’s decision to lay off over 1,900 employees across Xbox and Activision Blizzard only three months after acquiring the latter has been cause for plenty of debate, and it seems U.S. government officials were definitely keeping an eye on the situation. While the Activision Blizzard acquisition has officially gone through, the U.S. Federal Trade Commission has not given up their fight against it, filing appeals to block and reverse the deal as recently as this past December, and now they’ve filed a complaint about the recent Activision Blizzard layoffs. According to the FTC, the layoffs directly contradict statements that Microsoft made to them that Acti-Blizz would be operated independently at arm’s length, with no redundancies between the two companies.

The US Federal Trade Commission sure isn't happy about Microsoft's decision to lay off 1,900 staff from its games business.

Microsoft reneged on promises it made in court during its Federal Trade Commission (FTC) antitrust trial in 2023 by laying off 1,900 employees in late January, according to the FTC. FTC lawyer Imad Abyad filed a letter with the U.S. Court of Appeals for the Ninth Circuit on Wednesday, effectively telling on Microsoft. “This newly-revealed information contradicts Microsoft’s representations in this proceeding,” the FTC lawyer wrote.

Microsoft Corp.'s plans to cut 1,900 jobs from its video game division contradict statements the company made to a US  court that it would operate the newly acquired Activision Blizzard Inc. independently, the US Federal Trade Commission said Wednesday.

Microsoft recently cut 1,900 jobs from its gaming division and among the layoffs were many at the recently acquired video game developer Activision Blizzard. Blizzard Entertainment's President Mike Ybarra and co-founder Allen Adham are both departing. The tech giant also announced the cancellation of a Blizzard game, called “Odyssey,” that was already six years in development. On Tuesday, Microsoft reported quarterly earnings, posting its strongest revenue growth since 2022.

Crash Bandicoot developer Toys for Bob and Call of Duty studio Sledgehammer Games have reportedly lost around 40 per cent and 30 per cent of their staff, respectively.

Reports suggest that Toys for Bob has been hit hard by the Microsoft layoffs, with some sources saying that the developer has lost up to 40 percent of its staff. This comes just after Microsoft acquired Toys for Bob's parent company, Activision Blizzard, in a deal that cost almost $70 billion.

Following the most recent round of layoffs from Microsoft's Xbox division, details about Blizzard's in-development survival game, Odyssey, have now leaked online. Microsoft first announced the major layoffs earlier this week, reporting that 1,900 employees from the company had lost their jobs as a result. The layoffs reportedly saw particularly heavy impact on Microsoft's gaming division, with Activision Blizzard, Xbox, and ZeniMax reportedly seeing the brunt of the layoffs. Now, one of the casualties of the layoffs comes as an in-development survival game from Blizzard.

Following the huge layoffs (over 1,900 employees) announced yesterday by Microsoft across teams at Blizzard and Xbox, it was also revealed that Blizzard's survival game Odyssey had been canceled.

Microsoft recently announced widespread layoffs, confirming that it was cutting 1,900 jobs across its entire gaming division– which, following the company’s $69 billion acquisition of Activision Blizzard, also includes Blizzard Entertainment. The layoffs have also gone hand-in-hand with the cancellation of Blizzard’s long-in-development survival game, codenamed Odyssey, which was officially confirmed to be in development in 2022, and a new report published by Bloomberg’s Jason Schreier has shed more light on what brought about the highly anticipated project’s cancellation.