Diablo® III

Message from Mike Morhaime


Posts: 153
While Blizzard has certainly become more impersonal in their years of growth, I think it's impossible to ignore that declining WoW subscriptions means less need for all of their huge customer support organization. Most of their layoffs occurred there.

If a business doesn't have the work to keep all their employees busy, at a certain point they just have to get smaller. This isn't a corporate thing, or a shareholder-value thing, or anything else -- it's simply a matter of making sure that money spent provides some benefit.

The decline in WoW subscriber numbers has been going on for some time without a layoff in response, and I think that speaks to Blizzard's efforts to do well for their employees.

in fair, simple honesty, I agree. sometimes this sort of thing just needs to happen.

My rant was more directed at the obviously unnecessary things they do.

And blizzard's method of growing distant from its player base was really off-putting to many. They got tired of being treated like cattle too.
Posts: 153
People in this thread seem to think that Mike's pay and the lay-off of 600 people are somehow related. This is not the case. Assume you reduce Mike's pay to 500k. Will that mean that those 600 people are suddenly needed again? That they are worth their money? You really think it is a good idea to subsidize redundant employees through lowering the salaries of people that you actually need? They tried that in Russia, didn't work out that well.

Now, the discussion about the pay of someone like Mike is still valid (although it still pales in comparison to sports players), but should not be connected to the layoffs.

Mike's pay is unjustifiable. Period.

Technically, while not necessary or even particularly sensible, they could easily keep the employees on retainer with the money they give that man.

I've said my peace. I don't want to get banned for crossing a line somewhere, so I'll bow out now.
Edited by Honeybadger on 3/2/2012 2:26 AM PST
Posts: 462
As CEO your responsible for the companies success and failure. So yes he gets paid a lot when the company does good. And gets fired when the company does bad, or the very least a pay cut or no yearly bonus.

If the blizzard investors think that Mike Morhaime's pay is worth paying to keep him there, then as investors spending their own money, it is their right to do so.

It's sad to see so many people laid off, but companies need to restructure from time to time. Employers should not have to hire someone indefinitely when it makes no business sense. Employees however should have protection covered in their contracts, to give them a sufficient enough period of notice.

Employees hired under a temp contract basis, understand they can't stay on indefinitely. Some though are hired as permanent staff. For permanent staff, the only security you get is that you won't get lay off without a good reason (like you worked appropriately without doing anything wrong), and even if they do, they will need to compensate you for forcefully laying you off.

So the lesson here is, before joining a company, understand the agreement you sign to be employed by the company. If you don't agree with the contractural terms, go look for a job elsewhere :/

Don't !@#$% and whine about it when things don't go your way if you didn't bother reading and understanding the contract you signed.

If people are interested to who decides the CEO's pay, and what measures there are to prevent ceos and other top executives from abusing how much pay they get, read this article below that explains it.
Edited by Moogle on 3/2/2012 2:49 AM PST
Posts: 123
good good good
90 Orc Hunter
Posts: 15
, as well as other, unannounced projects.
-Mike Morhaime

This is what I wanna know about :P
Edited by Redwhisker on 3/2/2012 4:17 AM PST
Posts: 146
The ushering of WoW brought about a new age in Blizzard, which will ultimately lead to it's downfall as a premiere computer game company. If their new mmo Titan fails to catch the market, Blizzard will have officially fallen from it's pedestal. SC-II is still in need of significant adjustments and Diablo III (imo) has not panned out to what it should be at this stage in development. WoW will keep bleeding subscribers over the next three years and MoP will not stop the exodus. Next 5 years for Blizzard will honestly make or break the company's future.
67 Undead Rogue
Posts: 56
Does no one else think this might actually be a reasonable thing to do?

If most layoffs happened in the GM jobs, where there is less work to do because of not only less growth in the player base but an actual reduction, doesn't that make sense since some of these jobs just simply don't have a reason to be anymore?

I'm not saying that people don't matter. People aren't lightbulbs; people have families and a place in a community, and the loss of a job can be traumatic. Nonetheless, in a society based on innovation, economic growth and productivity, we're not going to expect blizzard to treat their employees like entitled European bureaucrats.

The more interesting question is knowing the content of the severance package. If the package is generous enough to help their old staffers weather the storm, I think that's the best for blizzard and society in general. If they treat the people leaving like dirt, that would be unacceptable. Maybe someone should interview someone leaving if their NDA isn't watertight?

To put it in concrete terms: instead of Blizzard having a bloated GM department with no one to serve, they cut their costs and have more of a budget to sustain or grow their dev team. They create the next best MMO because of the increase in talent, and hire more GMs again to service the new growing subscription base for their new game.

Chris Wright ‏@ChrisFW
@https://twitter.com/#!/Angryrobotics @https://twitter.com/#!/Bashiok
    on a scale of 1 to 10, (1=not even close, 10=imminent,) how close are we to that all important #D3 announcement?

Jay Wilson@Angryrobotics
@ChrisFW 9
85 Draenei Mage
Posts: 18
Normally when a company trims fat by means of lay offs and/or internal restructuring it will increase revenue into the company. Thereby make the company worth more which in turn will increase it's worth to it's shareholders as stocks rise. This is actually the first goal of any corporation.
1 Night Elf Rogue
Posts: 1
It's probably coming out sooner than we think.

I like your optimism and would like to second that response.
Posts: 188
yea 600 employees layoff is not a good sign. "World of Warcraft team would not be affected" wow thats .... its all about the money.

2nd Quarter: January 1, 2012 - March 31, 2012

so it will be soon but unless it gets push back which might happen.
85 Troll Hunter
Posts: 8
Your telling me the people that made the great campaign of Cod: MW2 and CoD: Mw3 are gonna be handling with a company that has 3 games that have massive fan base.... Im scared to see D3s story now :(
Not to be bad mouthing activision but once you make two games that could basicly be one game you kinda ruin a franchise that went from CoD4:MW= highest selling,best graphics,Beautiful online play, to CoD: MW3 = CoD4 graphics, shorter boring story, same online as CoD4 (with the exception of death streaks{aweful} and picking your own killstreak). I hope for all of our sakes they don't touch D3 or SC2:SoH or even WoW: MotP. those games are about story and immersion and activision has become basically online PvP :/
43 Human Paladin
Posts: 6
02/29/2012 09:31 AMPosted by Bashiok
After evaluating our current organizational needs, we determined that while some areas of our business had been operating at the right levels and could benefit from further growth, other areas had become overstaffed. As a result, we need to scale down some of our departments and part with some of our colleagues and friends here at Blizzard. I know that you all understand how difficult this type of situation can be for anyone who might be affected, so I want to assure you that we'll be offering each impacted employee a severance package and other benefits.

In the 'The Wonderful World of PR' anything can be said ;-|

First off, Diablo III has been in the making for what 10+ years now? Every BlizCon,Pax and a few other events has shown or displayed some reiteration of Diablo III trial looking very polished and just about ready to release. Why on earth are there still a ridiculous amount of changes taking place for Diablo III.

At this point what they had pre-Patch 13 was just fine before rune system got changed. Had any beta testers tried that rune system? It's almost as if Blizzard is spending to much time polishing and admiring the gem they are working on, and have almost forgotten about the their fanbase and just releasing the game?

Patches can be made and will exist! Blizzard pretty much has a complete product (Yes Blizzard has the luxury to take their time to produce a very good quality game, but just factor in time) we don't want another Duke Nukem. I know Blizzard has mentioned several times that the game was done but these final Destruct... Er, I mean tweaks are being finished.

I was really looking forward to the game since Diablo's announcement, but as of late some of the changes are like 'Eh...!? Seriously?' I have no other complaints as every other aspect of the game is amazing is quite breathtaking.

Now, wasn't there a deal with WoW where users upgrading their WoW subscriptions for another year would get the digital copy of DIII? Where does (did) that potential money go? Now I can't say nor assume what the reasons were for a 600 persons layoff but release the game already (Diablo III) before that Beta build 13. /rantoff
Edited by Amberley on 3/2/2012 4:24 PM PST
I think some of us should take a business management paired up with an economics class... now I haven't read all 23 pages of this, but I can only assume that there have been several rages on the layoff of people and its relation to D3.

America is a capitalist country. In very simple terms that means you can start from nothing and build an empire and become very very rich. So, regardless of what any of you may think, the ultimate goal of a company is to be successful and make money. Even if what you do is something you "love" doing, you can't live and thrive in an economy with love alone. So in order to be a more successful company, you constantly have to look at areas that are costing you more money that utility gained. Layoffs are always, always, always about money; it's just the simple truth of business. Sometimes it's because you can't pay them enough (because you're not making enough), and sometimes its because the company will be more efficient because of it. Even if you don't like it, it's the truth.
Posts: 371
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