Microsoft Layoffs Hit Majority of Warcraft Rumble Team
Image Credit: Microsoft
Warcraft Rumble—Blizzard’s ambitious mobile strategy game—has experienced severe downsizing, with half of the game's development team being laid off as part of Microsoft's restructuring efforts at Activision. Originally envisioned as Blizzard’s big entry into the competitive mobile market (not accounting for games that may have a mobile version but are not mobile-exclusive), Warcraft Rumble’s future now hangs in the balance due to underwhelming performance during early testing phases and increased competition in the mobile gaming space.
What led to the cuts?
Warcraft Rumble, which was rebranded from its original title Warcraft Arclight Rumble, was expected to bring the classic characters of the Warcraft universe into a new, fast-paced mobile strategy game. The game featured elements of tower defense and offense, with players using iconic Warcraft figures in PvP and PvE battles. However, despite leveraging one of gaming’s most recognizable franchises, Warcraft Rumble struggled to stand out from other established and popular mobile titles like Clash Royale and League of Legends: Wild Rift. In May of 2024, only half a year after release, Warcraft Rumble only earned $900,000 in revenue and <100k downloads.
During regional testing, the game failed to generate the player engagement Activision had hoped for. Issues like unbalanced gameplay, slow content updates, and a lack of excitement around its competitive features meant that Warcraft Rumble never built the momentum necessary for a full-scale global launch. The layoffs, affecting half of the team, suggest that Microsoft is reevaluating their approach to the game, possibly limiting future content releases or updates.
Image Credit: Microsoft
Warcraft Rumble isn’t the only mobile title within the company hit hard by layoffs. Call of Duty: Warzone Mobile has also seen job cuts due to its lackluster performance. The mobile shooter, which aimed to bring the intense battle royale experience of Warzone to phones, has had a difficult time out in a market dominated by well-established competitors like PUBG Mobile and Fortnite Mobile. These back-to-back setbacks are forcing Microsoft, post-Activision acquisition, to reconsider its broader mobile strategy, particularly as the mobile gaming space grows more competitive.
For Warcraft Rumble, the downsizing raises serious questions about its long-term viability, which is especially a concern for players who have spent lots of money on the game. While Blizzard has a strong track record with mobile-friendly games like Hearthstone, it appears the same magic didn’t carry over to Warcraft Rumble. Without the resources or team size to innovate and push updates, the game may face further delays or even a potential cancellation.
Blizzard and Activision have not technically announced any changes to the game's long-term plans, but with half the team gone, it’s clear that Warcraft Rumble is at a crossroads and faces an uphill battle. While one could argue that the lack of success just indicates how competitive the mobile market is, others could say that it rather highlights the downfall of a once great company, focusing on making as much money as they can with microtransactions and other gimmicks rather than creating games that sell themselves because they are genuinely fun.
For now, Warcraft Rumble's disappointing performance and the significant layoffs are emblematic of the larger difficulties Blizzard and Microsoft face in breaking into mobile gaming. Whether the game can recover from this blow remains to be seen, but it’s clear that the road ahead is filled with challenges and treatment that players of Heroes of the Storm (I still cry to this day) are all too familiar with.
Below is an email from Phil Spencer (CEO of Microsoft Gaming) on the topic:
For the past year, our goal has been to minimize disruption while welcoming new teams and enabling them to do their best work. As part of aligning our post-acquisition team structure and managing our business, we have made the decision to eliminate approximately 650 roles across Microsoft Gaming — mostly corporate and supporting functions — to organize our business for long term success.
I know that this is difficult news to hear. We are deeply grateful for the contributions of our colleagues who are learning they are impacted. In the U.S., we’re supporting them with exit packages that include severance, extended healthcare, and outplacement services to help with their transition; outside the U.S. packages will differ according to location.
With these changes, our corporate and supporting teams and resources are aligned for sustainable future growth, and can better support our studio teams and business units with programs and resources that can scale to meet their needs. Separately, as part of running the business, there are some impacts to other teams as they adapt to shifting priorities and manage the lifecycle and performance of games. No games, devices or experiences are being cancelled and no studios are being closed as part of these adjustments today.
Throughout our team’s history, we have had great moments, and we have had challenging ones. Today is one of the challenging days. I know that going through more changes like this is hard, but even in the most trying times, this team has been able to come together and show one another care and kindness as we work to continue delivering for our players. We appreciate your support as we navigate these changes and we thank you for your compassion and respect for each other.
Phil
