Activision Blizzard today revealed that it cuts jobs as part of its plan to cope with the disappointing prospects for fiscal 2019. One of the main reasons Activision expects sales to decline by 13% compared to last year is Blizzard Entertainment. The World of Warcraft studio is traditionally a bright spot for Activision, but it expects the studio to make less money in the next 12 months.
In 2018 Blizzard launched the seventh expansion of World of Warcraft, Battle for Azeroth. This helped to increase the company's sales, but the developer did not have anything like it in the fiscal year 2019. Activision told investors that Blizzard is the biggest reason why it expects revenue decline.
"We expect significantly lower financial results for Blizzard this year," said Activision's new CEO, Dennis Durkin. "2018 took advantage of the release of the Battle of Azeroth, where we do not plan to go out with a big front line for Blizzard in 2019."
But Durkin claims the company is investing in Blizzard's revival.
Coming soon from Blizzard
Activision cuts jobs over all of its businesses. But it also plans to invest a lot of money that saves to increase its development teams. One of the main initiatives here is to focus more on Activision's existing popular properties.
And do you know who has very popular properties? Blizzard.
Activision Chief Operating Officer Cody Johnson explained that the company did not withdraw. Instead, it strengthens these efforts.
"Overwatch's team is growing as it focuses on delivering a significant gas pipeline for development in the coming years," Johnson said. "And the Overwatch League remains a key strategic focus, where we will increase the number of resources that will be used to drive expansion of products and annual revenue growth."
Johnson in particular said Blizzard would return to new Warcraft games.
"World of Warcraft is an example of a franchise where Blizzard has already established a regular rhythm of basic content and in-game operations," says Johnson. "But Blizzard is also investing in other Warcraft games and working more ways for the community to engage in a lasting and loved franchise."
Finally, the publisher heard the fans cries and added more people to Diablo's team.
"The number of Diablo development employees will grow significantly," Johnson said. "The teams are working on several franchise projects as well as on the global performance of Diablo Immortal."