You’re One of Those Heroes, Aren’t You? Blizzard Co-founder Reportedly Left after Getting Tired of Fighting Activision Who Wanted to “Make as Much Money as Possible”
Mike Morhaime, co-founder of Blizzard Entertainment, departed from the company in 2018, reportedly due to his ongoing clashes with Activision CEO Bobby Kotick. New details have been revealed in excerpts from Jason Schreier’s upcoming book Play Nice: The Rise, Fall, and Future of Blizzard Entertainment.
According to this excerpt, Morhaime’s exit stemmed from a long-standing power struggle between his creative ideals and Kotick’s profit-driven focus. Morhaime, who valued the studio’s player-centric culture, found himself at odds with Kotick’s aggressive push for maximizing revenue, a conflict that would ultimately lead to his resignation.
Blizzard And Activision’s Partnership Didn’t Go As Expected
In 2007, the merger between Activision and Vivendi Games, Blizzard’s parent company, created Activision Blizzard, the most valuable dedicated gaming company. Blizzard dominated the PC gaming market with titles like World of Warcraft, while Activision led the console space with franchises such as Call of Duty.
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But their differing philosophies soon began to clash. New details have come thanks to an excerpt from Jason Schreier’s new book, via Bloomberg. The breaking point came with the cancellation of Project Titan in 2013.
The project’s failure, after seven years of development, cost the studio $80 million and deeply frustrated Kotick, who had banked on its success. With World of Warcraft subscriptions declining sharply, Kotick saw the studip faltering in delivering the next big hit, which intensified internal scrutiny and raised questions about it’s development process.
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As Activision took a larger role in operations, Kotick and his team sought to impose a more financially driven corporate structure. This approach became evident when the studio was pressured to hire Armin Zerza, a CFO with no gaming background but extensive experience in consumer goods.
Zerza’s emphasis on profits over the existing culture started internal resistance. He didn’t express much interest in gaming or the studio’s player-first culture. According to employees at the time, “he just kept talking about how to make as much money as possible.“
The Two Giants Are a Shadow of Their Former Greatness Now
Morhaime’s departure in 2018 followed a failed attempt to resign the previous year. His official exit came after a pivotal meeting between Activision, Blizzard, and King (a mobile gaming subsidiary), where the concept of “One ABK” was introduced.
In an email to Kotick, Morhaime expressed his concerns about losing the studio’s “culture and magic,” stating that these elements were essential for attracting top talent and maintaining the studio’s reputation for quality. However, his efforts to protect the studio’s identity proved futile, leading to his eventual resignation.
Blizzard’s slow response to Activision’s demands eventually contributed to its declining reputation, with a series of public-relations missteps, layoffs, and a damaging lawsuit accusing the company of fostering a toxic workplace culture.
The lawsuit, which was settled for $54 million in 2023, further tarnished the studio’s once-stellar reputation. During this time, Microsoft acquired Activision Blizzard in a historic $69 billion deal, cementing the end of an era for the gaming giant.
Reflecting on his departure, Morhaime expressed regret for the hardships faced by the studio’s employees, particularly those affected by the toxic culture that had been allowed to fester. “I am extremely sorry that I failed you,” he stated on X (formerly Twitter), acknowledging his part in the company’s troubled past.
What do you think of these new details about the situation over the years? Let us know in the comments!
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