Blizzard co-founder Mike Morhaime's departure in 2018 was reportedly due to his exhaustion from constant clashes with former Activision CEO Bobby Kotick, according to sources close to him. The two executives had been at odds for years over the direction of Blizzard. New insights into Morhaime's exit and the strained relationship between Blizzard and Activision are revealed in an excerpt from Bloomberg reporter Jason Schreier's forthcoming book, 'Play Nice: The Rise, Fall, and Future of Blizzard Entertainment,' set to release on October 8, coinciding with Blizzard's first expansion for Diablo 4, 'Vessel of Hatred.'
For years, Morhaime had fought to maintain Blizzard's autonomy from Activision, which acquired the company in 2007. This struggle intensified in 2013 when Blizzard canceled 'Project Titan,' an ambitious FPS MMO intended to be the successor to 'World of Warcraft,' as detailed by Schreier. The cancellation, which cost Blizzard approximately $80 million, led Kotick and Activision to tighten their grip on Blizzard, including the appointment of a chief financial officer, Armin Zerza, to oversee cost management. Zerza's focus on maximizing profits reportedly led to suggestions of cutting Blizzard's annual BlizzCon event, which was seen as having low profit margins. Blizzard recently announced that there will be no BlizzCon in 2024.
Morhaime continued to resist Kotick's influence, advocating for Blizzard's customer service and cinematics teams. After a meeting themed around 'One ABK' involving Activision, Blizzard, and King leaders, Morhaime expressed concerns about Blizzard's diminishing independence in a detailed email to Kotick. He emphasized the importance of preserving Blizzard's culture and magic to attract top talent. Morhaime initially resigned in 2017 but was persuaded to stay. However, following the 2018 'One ABK' meeting, he officially stepped down in October, stating it was time for new leadership.
Blizzard's journey continued without Morhaime, whom Schreier described as a revered figure among staff. In 2020, Morhaime founded a new game studio and publisher, Dreamhaven. Meanwhile, Blizzard faced significant controversy in 2021 when a California lawsuit accused Activision Blizzard of systemic sexual misconduct and discrimination, leading to a $54 million settlement in 2023. Morhaime expressed deep regret over the allegations. In the aftermath, Microsoft acquired Activision Blizzard for $69 billion, with Kotick stepping down as CEO in December 2023.
