Microsoft's recent gaming layoffs have sent shockwaves through the industry, and it seems that mobile game development is not immune to the cuts. The company has reportedly laid off teams working on popular titles like Call of Duty Warzone Mobile and Warcraft Rumble.
Microsoft's Gaming Layoffs Continue
The latest round of layoffs follows an earlier announcement of 1,900 job losses, bringing the total number of affected employees to a staggering 2,550 since Microsoft acquired Activision Blizzard last year. While Xbox boss Phil Spencer reassured staff that no games were canceled or studios closed this time around, it's clear that some teams have been impacted.
Mobile Game Development in Trouble
One of the affected teams is behind Call of Duty Warzone Mobile, a mobile experience that launched in March on iOS and Android. The game offers battle royale for up to 120 players, as well as cross-progression with PC and console versions. Despite an impressive IGN review score of 8/10, it seems that the game didn't quite hit the mark in terms of player engagement.
Activision had hoped that Warzone Mobile would make a splash in the competitive mobile shooter market, where Call of Duty Mobile has already established itself as a top contender. With over 650 million downloads since its launch, revenue is shared between Activision and Tencent. However, Warzone Mobile's development team is being scaled down, suggesting that the game hasn't met expectations.
Warcraft Rumble Also Impacted
Another mobile title affected by the layoffs is Blizzard's Warcraft Rumble, a free-to-play tower defense game that launched in 2023. While it started strong, interest appears to have tailed off, and the team is now shifting from launch to post-launch live ops.
The recent struggles of Activision Blizzard's mobile games call into question Microsoft's acquisition of the company, which was partly motivated by Xbox's lofty mobile ambitions. As Microsoft plans to launch its own app store, taking on Apple and Google in the lucrative mobile game space, it remains to be seen how this will impact their mobile game development efforts.
Gaming Revenue Remains Strong
Despite these setbacks, gaming revenue overall appears to be doing more than fine, with a 44% year-over-year increase. Xbox content and services revenue saw an even stronger growth of 61%, thanks in part to the boost offered by Activision Blizzard.
Microsoft's More Personal Computing division (which includes Xbox) brought in $15.9 billion in revenue during Q4, up 14% year-over-year. With the company set to launch Activision's Call of Duty: Black Ops 6 on Game Pass in October and rumored plans for an Xbox handheld, it remains to be seen how these developments will impact their mobile game development efforts.
Author: Wesley is the UK News Editor for IGN. Find him on Twitter at @wyp100. You can reach Wesley at wesley_yinpoole@ign.com or confidentially at wyp100@proton.me.