Blog Post: Microsoft Axes Blizzard's Survival Game Amid Job Cuts

• Microsoft cut nearly 2000 jobs across its gaming division, including Activision Blizzard, ZeniMax, and Xbox.
• Blizzard's survival game "Odyssey" was canceled, resulting in layoffs for most of the project team.
• Odyssey faced challenges with game engine choice, leading to wasted resources and time.
• The team was aiming for a 2026 release, but due to engine issues, Odyssey was canceled and the team disbanded.
• The layoffs follow Microsoft's $69 billion acquisition of Activision Blizzard and previous job cuts across its gaming division.

Job Cuts at Microsoft Affect Gaming Division

On January 25, Microsoft made a drastic cut of nearly 2000 jobs across its gaming division. This impacted employees at Activision Blizzard, ZeniMax, and Xbox. Further, it was revealed that a survival game under development by Blizzard, codenamed “Odyssey,” has been canceled, resulting in most of the project team being laid off.

Reaction to the Layoffs

A Blizzard representative, Andrew Reynolds, stated to Bloomberg on January 25 that the development of Odyssey had been discontinued to allow the company to "focus on projects that hold the most promise for future growth." Although it was reported that most of the team had been laid off, Reynolds suggested that some team members would be reassigned to other projects. Many of those who had worked on the game, which had been in development for six years, took to Twitter to share the unfortunate news of their layoffs.

About the Canceled Game: Odyssey

Odyssey began in 2017 as a pitch by Blizzard veteran Craig Amai. Despite the company investing heavily in the project and assembling a team of over 100 people, the game remained a mystery until January 2022. At that time, the company announced the game, stating it was set in "a whole new universe" and posted job openings for roles in art, design, and programming.

Challenges Faced by Odyssey's Development

One of the main roadblocks for Odyssey was the game engine. Initially prototyped in Unreal Engine, Blizzard executives later decided to use a different engine capable of supporting 100 players in the game’s world simultaneously, a feat Unreal could not handle. Consequently, Synapse, an internal engine developed for mobile games was introduced. This switch led to several issues, resulting in artists continuing to work in Unreal despite knowing their work would eventually be scrapped. This led to wasted resources and time.

The Aftermath of Odyssey's Cancellation

Despite the issues with prototyping, the team was aiming for a 2026 release. However, due to the Synapse engine not being ready for production, Odyssey was canceled and the team was largely disbanded. Reynolds commented on the cancellation, stating that while making such decisions is difficult, experimentation and risk-taking are part of Blizzard’s history and the creative process.

Continuing Impact of Layoffs in the Gaming Industry

The layoffs at Xbox occurred just three months after Microsoft's $69 billion acquisition of Activision Blizzard. In the previous year, Microsoft had cut 10,000 jobs, inclusive of staff at 343 Industries, Bethesda Game Studios, and The Coalition. The start of 2024 has been grim for the industry, with more developers losing their jobs.

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