{"id":1627757,"date":"2026-07-07T10:54:19","date_gmt":"2026-07-07T10:54:19","guid":{"rendered":"http:\/\/iMtwDVLNDwZMniTFh8Xdg8"},"modified":"2026-07-07T10:54:19","modified_gmt":"2026-07-07T10:54:19","slug":"it-looks-like-blizzards-escaped-xboxs-grim-reset-scythe-for-now-though-theres-still-time-to-be-caught-in-the-second-1600-strong-layoff-wave-coming-2027","status":"publish","type":"post","link":"https:\/\/arcader.org\/news\/it-looks-like-blizzards-escaped-xboxs-grim-reset-scythe-for-now-though-theres-still-time-to-be-caught-in-the-second-1600-strong-layoff-wave-coming-2027\/","title":{"rendered":"It looks like Blizzard&#8217;s escaped Xbox&#8217;s grim reset scythe for now, though there&#8217;s still time to be caught in the second 1600-strong layoff wave coming 2027"},"content":{"rendered":"<article>\n<p>The <a href=\"https:\/\/www.pcgamer.com\/gaming-industry\/xbox-is-laying-off-3-200-people-and-dumping-4-studios\/\">Xbox reset is afoot<\/a>, and while there aren&#8217;t strictly speaking any studio <em>closures <\/em>yet, with multiple developers in the process of moving elsewhere<em>, <\/em>the shockwaves from its impact are still being felt across Xbox&#8217;s continually-shrinking staff. All in the service of a mathematically <a href=\"https:\/\/www.pcgamer.com\/gaming-industry\/xboxs-ceo-wants-its-games-to-cater-to-more-than-a-billion-people-each-day-or-24-times-more-than-the-peak-population-of-steam-which-is-delusional\/\">improbable 1 billion daily player count<\/a>, or something. It&#8217;s <a href=\"https:\/\/www.pcgamer.com\/gaming-industry\/foolproof-ways-to-get-laid-off-in-the-videogame-industry\/\">hard to keep track<\/a>. <\/p>\n<p>Anyway, given Blizzard was namedropped in the <a href=\"https:\/\/news.xbox.com\/en-us\/2026\/07\/06\/resetting-xbox\/\" target=\"_blank\">announcement post<\/a> as a target that&#8217;d be experiencing &#8220;reductions&#8221; and &#8220;shifting investment&#8221;, one might wonder if the developer\u2014which Microsoft acquired for an <a href=\"https:\/\/www.pcgamer.com\/microsoft-will-acquire-activision-blizzard\/\">eyewatering $68.7 billion<\/a>\u2014was on the chopping block.<\/p>\n<p>The evidence points towards Blizzard escaping the reaper&#8217;s scythe, for now. First up is this <a href=\"https:\/\/www.windowscentral.com\/gaming\/blizzard\/today-is-a-difficult-day-so-far-xboxs-cuts-havent-massively-impacted-blizzard-for-now\" target=\"_blank\">Windows Central article<\/a>, which both quotes anonymous sources to the affirmative <em>and <\/em>has an email from Blizzard President Johanna Faires that reads: &#8220;While you can expect to hear more details regarding the day&#8217;s events and what they mean for Blizzard in further communications.&#8221;<\/p>\n<p>Then, there&#8217;s narrative designer and union member Benjamin Wagner, who <a href=\"https:\/\/bsky.app\/profile\/beewubs.bsky.social\/post\/3mpykk2exmk2x\" target=\"_blank\">wrote<\/a>: &#8220;No union employees at Blizzard were impacted by today\u2019s bloodbath\u2014and I sincerely doubt that was because the powers that be think that we\u2019re all vital. Odds are, they wanted easy cuts. Status Quo makes you not easy.&#8221;<\/p>\n<p>Not every worker at Blizzard is unionised, but there&#8217;s also this statement from the World of Warcraft Gamemakers Guild-CWA, posted here by the union&#8217;s Reddit account <a href=\"https:\/\/www.reddit.com\/r\/wow\/comments\/1up6rw3\/a_statement_from_the_world_of_warcraft_gamemakers\/\" target=\"_blank\">to the r\/WoW subreddit<\/a>. In it, the union expresses solidarity with &#8220;all other affected studios&#8221; which, by process of elimination (and the other posts above) suggests a relatively near-miss.<\/p>\n<p>Lastly, Bloomberg&#8217;s <a href=\"https:\/\/bsky.app\/profile\/jasonschreier.bsky.social\/post\/3mpyrvqncz22z\" target=\"_blank\">Jason Schreier<\/a> writes: &#8220;The staff of Blizzard Entertainment were told today that they won&#8217;t hear how the reorganisation impacts them until &#8216;further communications&#8217;.&#8221; <\/p>\n<p>That last bit is, indeed, what I can imagine feels like a great sword dangling over the heads of every Blizzard developer. Not only because this isn&#8217;t the first time Microsoft has made cuts to the studio\u2014an <a href=\"https:\/\/www.pcgamer.com\/stunned-devs-left-scrambling-for-livelihoods-in-wake-of-yesterdays-layoff-bloodbath-in-the-end-the-contributions-didnt-matter\/\">acquisition-led bloodbath<\/a> immediately after its purchase, for instance, saw many developers left in precarious situations by the unfeeling corporate growth machine.<\/p>\n<p>But also because, as stated in that announcement post, Xbox is far from finished. Around 1,600 roles have been removed, but by 2027 another 1,600 jobs will be lost. Which I&#8217;m sure is absolutely splendid for morale, and won&#8217;t have any deleterious effects on an already-terrified workforce. You simply have to give it up for Microsoft. Is it clear I&#8217;m gritting my teeth, yet?<\/p>\n<p>The maddening thing here is that I cannot genuinely think of a world in which Blizzard&#8217;s games <em>aren&#8217;t <\/em>raking in cash. We&#8217;re talking about World of Warcraft here. Overwatch seems like a free money printer with its season passes and cosmetics\u2014the same for Diablo 4. If there&#8217;s a world in which Blizzard somehow isn&#8217;t profitable enough, then I&#8217;m starting to think there&#8217;s no corner executives won&#8217;t plunder for a shareholder bump.<\/p>\n<p>It could be worse, though\u2014<a href=\"https:\/\/www.pcgamer.com\/games\/mmo\/elder-scrolls-online-developer-left-reeling-by-xbox-layoffs-with-teams-gutted-senior-talent-gone-and-roadmaps-shifting-as-a-result\/\">Zenimax Online Studios<\/a> has been hit far harder, with the Elder Scrolls Online developer suffering major cuts despite a fierce effort to bring the MMO back into the spotlight and bright plans for the future. <\/p>\n<div class=\"product\"><a data-dimension112=\"b971f88c-fa6c-45a0-9e06-47899ac52edf\" data-action=\"Deal Block\" data-label=\"2026 games\" data-dimension48=\"2026 games\" target=\"_blank\" rel=\"nofollow\"><\/p>\n<figure class=\"van-image-figure \" >\n<div class='image-full-width-wrapper'>\n<div class='image-widthsetter' style=\"max-width:661px;\">\n<p class=\"vanilla-image-block\" style=\"padding-top:98.94%;\"><img loading=\"lazy\" decoding=\"async\" id=\"6offQUY4CXebir2TC27dMd\" name=\"kingdom come 2 square\" caption=\"\" alt=\"\" src=\"https:\/\/arcader.org\/wp-content\/uploads\/2026\/07\/it-looks-like-blizzards-escaped-xboxs-grim-reset-scythe-for-now-though-theres-still-time-to-be-caught-in-the-second-1600-strong-layoff-wave-coming-2027.jpg\" mos=\"\" align=\"middle\" fullscreen=\"\" width=\"661\" height=\"654\" attribution=\"\" endorsement=\"\" credit=\"\" class=\"\"><\/p>\n<\/div>\n<\/div>\n<\/figure>\n<p><\/a><\/p>\n<p><a href=\"https:\/\/www.pcgamer.com\/games\/new-pc-games-2026\/\" target=\"_blank\" data-dimension112=\"b971f88c-fa6c-45a0-9e06-47899ac52edf\" data-action=\"Deal Block\" data-label=\"2026 games\" data-dimension48=\"2026 games\" data-dimension25=\"\"><strong>2026 games<\/strong><\/a>: All the upcoming games<br \/><a href=\"https:\/\/www.pcgamer.com\/the-best-pc-games\/\" target=\"_blank\"><strong>Best PC games<\/strong><\/a>: Our all-time favorites<br \/><a href=\"https:\/\/www.pcgamer.com\/the-50-best-free-pc-games\/\" target=\"_blank\"><strong>Free PC games<\/strong><\/a>: Freebie fest<br \/><a href=\"https:\/\/www.pcgamer.com\/best-fps-games\/\" target=\"_blank\"><strong>Best FPS games<\/strong><\/a>: Finest gunplay<br \/><a href=\"https:\/\/www.pcgamer.com\/best-rpgs-of-all-time\/\" target=\"_blank\"><strong>Best RPGs<\/strong><\/a>: Grand adventures<br \/><a href=\"https:\/\/www.pcgamer.com\/the-best-co-op-games\/\" target=\"_blank\"><strong>Best co-op games<\/strong><\/a>: Better together<\/p>\n<\/div>\n<\/article>\n<p><a href=\"https:\/\/www.pcgamer.com\/gaming-industry\/it-looks-like-blizzards-escaped-xboxs-grim-reset-scythe-for-now-though-theres-still-time-to-be-caught-in-the-second-1600-strong-layoff-wave-coming-2027\/\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Xbox reset is afoot, and while there aren&#8217;t strictly speaking any studio closures yet, with multiple developers in the process of moving elsewhere, the shockwaves from its impact are still being felt across Xbox&#8217;s continually-shrinking staff. All in the service of a mathematically improbable 1 billion daily player count, or something. It&#8217;s hard to keep track. Anyway, given Blizzard was namedropped in the announcement post as a target that&#8217;d be experiencing &#8220;reductions&#8221; and &#8220;shifting investment&#8221;, one might wonder if the developer\u2014which Microsoft acquired for an eyewatering $68.7 billion\u2014was on the chopping block. The evidence points towards Blizzard escaping the reaper&#8217;s scythe, for now. First up is this Windows Central article, which both quotes anonymous sources to the affirmative and has an email from Blizzard&hellip;<\/p>\n<p class=\"excerpt-more\"><a class=\"blog-excerpt button\" href=\"https:\/\/arcader.org\/news\/it-looks-like-blizzards-escaped-xboxs-grim-reset-scythe-for-now-though-theres-still-time-to-be-caught-in-the-second-1600-strong-layoff-wave-coming-2027\/\">Read More&#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":1627758,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[336],"tags":[5491],"class_list":["post-1627757","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pc-gamer","tag-gaming-industry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>It looks like Blizzard&#039;s escaped Xbox&#039;s grim reset scythe for now, though there&#039;s still time to be caught in the second 1600-strong layoff wave coming 2027 | Arcader News<\/title>\n<meta name=\"description\" content=\"The Xbox reset is afoot, and while there aren&#039;t strictly speaking any studio closures yet, with multiple developers in the process of moving elsewhere,\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/arcader.org\/news\/it-looks-like-blizzards-escaped-xboxs-grim-reset-scythe-for-now-though-theres-still-time-to-be-caught-in-the-second-1600-strong-layoff-wave-coming-2027\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"It looks like Blizzard&#039;s escaped Xbox&#039;s grim reset scythe for now, though there&#039;s still time to be caught in the second 1600-strong layoff wave coming 2027 | Arcader News\" 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grim reset scythe for now, though there's still time to be caught in the second 1600-strong layoff wave coming 2027 | Arcader News","og_description":"The Xbox reset is afoot, and while there aren't strictly speaking any studio closures yet, with multiple developers in the process of moving elsewhere,","og_url":"https:\/\/arcader.org\/news\/it-looks-like-blizzards-escaped-xboxs-grim-reset-scythe-for-now-though-theres-still-time-to-be-caught-in-the-second-1600-strong-layoff-wave-coming-2027\/","og_site_name":"Arcade News","article_published_time":"2026-07-07T10:54:19+00:00","og_image":[{"url":"https:\/\/arcader.org\/wp-content\/uploads\/2026\/07\/it-looks-like-blizzards-escaped-xboxs-grim-reset-scythe-for-now-though-theres-still-time-to-be-caught-in-the-second-1600-strong-layoff-wave-coming-2027.jpg","type":"","width":"","height":""}],"author":"Arcade News","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Arcade News","Est. reading time":"3 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