Dreamhaven Reduces Workforce, Publishing Division Most Affected
Dreamhaven, the game studio founded by Blizzard co-founder Mike Morhaime, has announced a reduction in its workforce. Morhaime himself shared the news via a LinkedIn post, indicating that the layoffs primarily impact the company's publishing division.
“We have made the difficult decision to reduce the size of our company. This decision primarily affects our publishing division,” Morhaime stated. He expressed gratitude to all affected employees for their dedication and hard work, promising support during this transition period. Those impacted will receive a comprehensive package, including severance pay and extended health benefits. The exact number of employees affected has not been specified.
This restructuring comes after an August Bloomberg report, which cited an internal letter from Morhaime allegedly stating that the company's “monthly expenses exceed revenue.” The article also claimed that despite positive internal feedback, Dreamhaven's multiplayer shooter Wildgate and turn-based tactics game Sunderfolk performed below the company's internal expectations. The report indicated projected figures of 130,000 copies for Wildgate within its first month post-launch and only 62,000 units for Sunderfolk from April 2025.
Development of Wildgate and Sunderfolk to Continue Uninterrupted
Despite the layoffs, Morhaime emphasized in a comment to PC Gamer that these changes will not impact the “ongoing development of Wildgate, Sunderfolk, and other projects.” This suggests that the studio remains committed to its core game development initiatives, despite the operational adjustments.
Mike Morhaime departed Blizzard in 2018 and subsequently founded Dreamhaven two years later, in 2020. The studio aimed to create a haven for game development, fostering a creative environment for new projects.
For players anticipating Wildgate, set to release on July 22, 2025, and Sunderfolk, launching on April 23, 2025, this news offers a mixed message. While the internal sales projections might have prompted a company-wide restructure, Morhaime's assurance means development for these titles is expected to proceed as planned. This period of change likely indicates a strategic refocus for Dreamhaven, aiming to streamline operations while continuing to deliver its promised gaming experiences.
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